What is a Viatical Settlement?
Imagine you’ve just been diagnosed with a chronic or terminal illness, and your time on this planet is limited to two years or less. It’s a heart-wrenching situation, and you’re probably dealing with a lot.
One of the things on your mind is how you’re going to make the most of the time you have left. You also need money to cover your medical costs. You have a life insurance policy, but the plan is useless now given your medical situation.
A viatical settlement works when you have a terminal illness, and you wish to sell your life insurance to a third party for a single lump sum. That sum is considerably less than the face value of the insurance, but it’s enough to get by with the time you have left. You now have money you can use to set your affairs in order.
A viatical settlement benefits both you and the new owner. The latter takes over the life insurance policy and continues to pay the monthly premiums. When you pass away, the new owner can cash in on the insurance benefits. At first, a viatical settlement seems like a cold or even harsh step to take, but it can serve a great purpose for you and the purchaser.
How Is a Viatical Settlement Different from a Life Settlement?
Viatical settlements and life settlements are different in that they represent different conditions and ages of respective insurance policyholders. With viatical settlements, you can be virtually any age if you’re old enough to hold the policy in the first place, your health is also in serious jeopardy, and you’ve likely only been given a certain amount of time to live.
With life settlements, however, you are usually not facing such extreme medical conditions. You are also typically between the ages of 65 and 70.
By selling, you garner a cash sum designed to help you in your final days. Whether it’s hiring a lawyer to make a will or enjoying a few final goals on your bucket list, the money is designed to make your life a little more comfortable.
Additional Viatical Settlement Considerations
A viatical settlement company will sell your life insurance policy for cash. You don’t have to worry about doing mounds of work to find the right buyer for your insurance. A company can take care of all the hard work for you.
At that point, you will not have to pay the premiums and will receive a lump sum payment. The premium payments are taken over by the purchasing party, relieving any further monetary strain from your shoulders.
When Is It a Good Idea to Use a Viatical Settlement?
You should consider a viatical settlement when you can no longer pay your monthly premiums on the plan. Viatical settlements prevent policies from lapsing, while still ensuring a designated party receives their financial due after you pass away.
Other reasons to consider a viatical settlement may be that your insurance plan is nearing its expiration date. Term policies, for example, end when you reach a certain age. You may consider turning a plan like this into permanent insurance and then selling it to get your hands on the money early.
Lastly, a viatical settlement is also an option if you’re looking to have some money in hand to enjoy your last days, or you no longer need protection against income loss.
When You’re Finally Ready for a Viatical Settlement
If you have a life insurance policy that you no longer need or want, and you’d like to sell it for some quick cash, we can help.
We are Harbor Life, and for years, we’ve been helping people just like you turn their unwanted or unneeded life insurance policies into cash. You can use the sale proceeds in any way you wish to enjoy your remaining years.
If you’re thinking about traveling, spending more time with your family or just paying off some final debts, a viatical settlement could be the answer you’re looking for. We know the viatical settlement business through and through, and we’d love to help you in making a final decision.
Call us today to speak with one of our qualified agents. They’re ready and waiting by the phone to answer any questions you might have. You can also visit our website for a free estimate on your insurance policy.