Life insurance is a crucial expense that everyone should invest in wisely. In the event of your death, a life insurance policy will ensure that your expenses are handled appropriately after death and keep your family safe from any financial burdens. However, if you were to become terminally ill you may have the option to sell your life insurance. The viatical settlement process is similar to a life settlement. If you are terminally ill and need a lump sum of cash now, this may be the solution for you. Though there are some downsides to a viatical settlement, a terminally ill person may want to settle for a variety of reasons.
Serious Decline in Health
If you shop smart and do your research, it won’t be hard to get yourself a cheap life insurance policy. You will rest easy knowing that you and your family are protected from financial burdens in the event of your death. However, if you were to become terminally ill you may find that the money your family would receive from your life insurance policy after your death could be better used in the present. In the event of a dramatic decline in your health the money could be used for in home care or to manage your day to day life.
You Have No Need for Life Insurance
You may want to consider a viatical settlement if you find that you no longer have a need for your life insurance policy. If you have no one to leave an estate to, and beneficiaries, there isn’t any reason why you need life insurance. Instead, you may want to use the money to make your life more comfortable.
You Need Cash Now
The top reason people need viatical settlements is that they need money and can’t wait to collect on your insurance policy. For example, if you are ill and have a loved one caring for you, they are more than likely going to be held responsible for thousands of dollars worth of medical expenses that health insurance will not cover.
You may want the money now so that you can handle any outstanding debts before your death so that it does not become a burden to your family. Handling your financial affairs will bring you peace of mind and rid your family of any financial burdens.
If you share a home with your spouse, you may want to consider paying off your mortgage. Paying off your home before you go will give your spouse one less thing to worry about. Before making this decision, you should check in with a professional and see that it makes sense from a tax perspective.
Many people decide they want to live out the rest of their days vacationing and exploring the world but not all are financially stable enough to do so. A viatical settlement makes this possible. Instead of spending out the rest of your days on a sofa or bed you can choose to spend your final days cruising the world’s oceans, or taking vacations to see the wonders of the world.