Viatical settlements are a financial option for cancer patients who are struggling to pay for their medical care. Receiving a cancer diagnosis can be a daunting and overwhelming experience. Not only do patients face the physical and emotional toll of the disease, but they also face the financial burden of medical treatments and care. One option that may provide financial assistance is a viatical settlement, which is a financial transaction that allows individuals with a life-threatening illness, such as cancer, to sell their life insurance policy to a third party in exchange for a lump sum cash payment. On average, an individual with Stage 4 cancer can sell their life insurance policy for 50% – 80% of the death benefit payable in cash today to use immediately for cancer care expenses.
Viatical settlements can be a helpful way to get the financial assistance you need to cover the out of pocket costs of cancer care, loss of income, travel expenses, and even bucket list experiences. However, it’s important to understand what a viatical settlement is, how it works, what to expect, and how it can benefit you.
A viatical settlement is a contract between a life insurance policy owner (the seller) and a third party (the buyer). The seller agrees to sell the policy to the buyer for a lump sum of cash. In exchange for cash, the buyer then becomes the owner of the policy and assumes all future premiums costs. When the seller dies, the buyer receives the full death benefit.
Viatical settlements are typically used by people who are terminally or chronically ill. To be eligible for a viatical settlement, you must have a life insurance policy with a death benefit of at least $50,000 and be a resident of the United States. Because of the terminal or chronic illness, there is no age restriction, but it is important to note not all life insurance policies are sellable. You can typically sell a term policy, whole life policy, universal life policy and some group policies. The viatical settlement process can take 4-8 weeks from start to finish.
There are several benefits to using a viatical settlement. First, it can provide you and your family with the financial assistance you need to cover the costs of cancer care. Second, it can give you peace of mind knowing that you have access to cash to cover any loss of income, travel expenses, bucket list experiences, and even financial planning expenses that you need to do while you are alive. Third, it can take away the added stress of financial burdens that you may be experiencing giving you the peace of mind to allow for healing. Fourth, the sale proceeds of a viatical settlement may be tax free depending on your health diagnosis allowing you to retain the full sale value of the policy.
If you are considering a viatical settlement, it is in your best interest to work with a licensed viatical settlement broker. A viatical settlement broker can help you understand the benefits and risks of viatical settlements and find the right buyer for your policy. Life Policy Solutions is a licensed and trusted viatical settlement broker located in California. Life Policy Solutions has a 95% success rate of selling a viable policy, with an average viatical settlement sale price of 74% of the death benefit, and an A+ Better Business Bureau rating.
When choosing a viatical settlement broker, it is important to consider the following factors:
Cancer Care can be very expensive. If you are considering integrative cancer care that is not covered under traditional health insurance you may be looking at $50,000-$120,000 in out of pocket expenses, not including your travel and living costs while obtaining treatment. This is no small expense for anyone and having access to this amount of money can be the difference between receiving or not receiving the treatment you need. Financial assistance programs for cancer care are few, and fundraising while a great benefit can some times not raise enough money for the entirety of the care you need. Selling a life insurance policy is an excellent financial asset that can be sold to give you access of up to 80% of the death benefit in cash today to then be used for cancer care costs and expenses.