Many think of a life insurance policy as something that’s important to have but whose true advantage may only be realized through a death benefit. This concept has been solidified over the years through messaging from TV and radio ads that urge potential policy holders to purchase a life insurance policy with the financial well-being of their loved ones in mind. While this can be true, there is also a real-time and significant advantage for policy holders during their lifetime as a financial resource in a time of need. What is a Viatical Settlement? In the event of the diagnosis of a life threatening or terminal illness, a policy holder can receive an immediate benefit through the sale of a life insurance policy that has been kept up to date through the regular payment of premiums over the lifetime of a policy. Selling a life insurance policy through a licensed viatical settlement broker to a buyer for a cash settlement is known as a viatical settlement. This settlement is a smart way to add a measure of comfort and financial security. Are Viatical Settlements Something New? While the concept of viatical settlements may seem new, it has actually been in use for 20 years, and during that time there have been no consumer complaints from individuals who worked with a licensed broker. When a cash settlement from a life insurance policy is received, that money can be used by the policy holder as desired. Some use the cash settlement to explore alternative treatments not covered by most health insurance, a trip with loved ones for a vacation or holiday, or...
Do you or a loved one own life insurance? If so, it was most likely purchased with the thought of providing a measure of financial security for your family after you are gone, rather than as a financial resource in a time of need. The fact is that less than 10 percent of all life insurance pays a death benefit. The rest is forfeited or lapses because of lack of payment, loss of job, or for other reasons. This need not be the case. A life insurance policy is a tangible way to provide peace of mind both for the insured, as well as their family members. Immediate Benefits of a Life Insurance Policy In an unexpected event such as a serious illness affecting life expectancy, a life insurance policy can be brokered for a cash settlement. Formally known as a viatical settlement, this financial alternative can be a way to restore a feeling of control in a period of time turned upside down by the diagnosis of an unexpected life threatening or terminal illness. Funds obtained from a viatical settlement can be used as the policyholder sees fit. For instance, the cash could be used by the policy owner to fill in financial gaps experienced as the result of loss of income if they can no longer work. Others may use the money to explore alternative medical treatments not covered by insurance, or liquid resources to pay bills or provide a cushion for miscellaneous expenses. The Choice is Up to You The most important thing to know that most any type – group, individual, term, universal, whole life,...
