Nobody wants to think about death; however, it’s important to consider, especially as you grow older or are diagnosed with a chronic illness. This importance becomes even more crucial if you have a family who relies on you for some level of financial stability. Once you get married or have children, for example, you’ll want to set up a last will and testament in order to provide instructions to your heirs about how you want your wealth distributed.
Of course, life can make it difficult to accomplish everything that you know you should do, even if you fully intend to get your financial plan completed in a timely manner. From becoming debt free to set up an appropriate amount of money to retire, there are many financial goals to weigh as you live your life and work to provide a good life for your family. That being said, the sudden diagnosis of a life-altering condition, disease, or chronic disease can throw even the best-laid plans for a major loop. In these sorts of situations, it may make sense to take out a viatical settlement from your life insurance policy in order to better make ends meet. Read on to learn more about viatical settlements as well as some of the most common ways to use them wisely.
What is a viatical settlement?
Many people don’t know what viatical settlements are, even if they qualify for them. Simply put, if you currently have a life insurance policy, a viatical settlement is a lump cash payout that offers you money now in exchange for selling your life insurance policy. In a way, working with a viatical settlement provider is akin to taking out a loan in the sense that a viatical settlement is paid back when you pass away, and the company who offered you the lump sum can cash out your life insurance policy. As such, viatical settlements pay a portion of your overall life insurance payout, rather than the full face value of your policy. That being said, if you need money quickly, a viatical settlement may be worth reducing the full amount of your payout, since some viatical settlement companies offer viators more than two-thirds of their total policy value.
In order to qualify for a viatical settlement, a certain number of factors must be met. First, you need to have a life insurance policy, whether that policy is a group, universal, whole, or term life insurance policy. Beyond that, you need to have a certain value associated with that policy, usually at $100,000 or more. Finally, you need to have a medical diagnosis of a chronic illness that impacts your day to day life and wellbeing. In some situations, the type of illness makes a difference, but many times this has more to do with the viatical settlement company you’re considering. For example, if you’re considering pursuing viaticals settlements from American Life Fund, you may find that American Life Fund is specifically able to address cancer diagnoses, even though these aren’t the only kinds of viatical settlements they offer. A life settlement company like American Life Fund can also help you understand the life settlement regulations that various states have.
Should you use a viatical settlement for medical expenses?
One of the most common reasons that people seek out a viatical settlement is because of the undue burden that their chronic illness places on others. Even if you have good health insurance, medical bills can quickly pile up and become crippling. If you’re unable to keep up with your medical costs (keep in mind how expensive routine testing and getting annual X-rays or MRIs can be) you may accumulate a bit of medical debt. This sort of debt can eat into the quality of life for you and your family, so it isn’t necessarily a bad idea to look into a viatical settlement in order to cashflow these costs. Doing so can allow you to stay on top of your personal finances as you fight your cancer or other chronic illness.
Should you use a viatical settlement to improve your home?
When it comes to using viatical settlement cash to improve your home, there are a few different elements of the decision to weigh. This sort of calculation will differ from person to person and depend on the quality of your existing home and your plans for the future. For example, if you anticipate needing to sell your home and downsize for financial reasons or to improve your quality of life while you face your chronic illness, it may be worth upgrading aspects of your home. This can be money well-spent since it can result in your home’s value increasing or selling faster.
Upgrading the exterior aspects of your home is always a surefire way to increase its value. For starters, improving your windows or siding can help your insulation be more effective while also showing potential buyers that you take care of your home appropriately. Finding local Grand Rapids window companies if you’re in the Michigan area can be a great way to save money without compromising on professional service. It’s also important to focus on your landscaping, too, since overgrown properties or older trees can lower your curb appeal or even pose a risk to your home. Again, it’s a good idea to find a local option if you don’t want to sacrifice service, price, or quality, so take a look at Brisbane tree lopping companies if you live in Australia and want to ensure that things are handled well every step of the way. Spending some time finding the right window company or tree service can ultimately make a big difference by ensuring that you tap into years of experience with your viatical company’s settlement and get the best offer on your service.
As you can see, there is a wide variety of reasons that someone may seek a viatical settlement. Viatical settlement providers can help families access the financial assets they need when they need them, ultimately offering a greater amount of peace of mind and stability during some of the most challenging times you’ll face. It’s easy to think that your personal finances are in order up until a major emergency like a cancer diagnosis shows up on your doorstep. In these situations, being able to tap your existing life insurance policy for a lump sum to address medical expenses or improve your home can make the difference between your family has what they need or not after you pass away. If you think that you could benefit from a viatical settlement, reach out to a viatical settlement broker today to see what sorts of options you and your family might qualify for.