Life insurance policies have a cash value. Individuals who need funds or who no longer need the insurance policy can opt to receive the cash value instead of leaving the policy for beneficiaries to claim after their death. Policyholders can also sell their policy to receive a life settlement. Life settlements pay more than the cash value of the policy, but they pay less than viatical settlements.
Viatical settlements are reserved for individuals who are terminally ill. The policyholder sells their policy and receives a single cash payment in exchange for their policy. Read on to learn about the advantages and restrictions that apply to viatical settlements.
What is the process for obtaining a viatical settlement?
Contact a viatical settlement company, such as americanlifefund.com, to discuss selling your policy for a viatical settlement. Viatical settlement companies will verify your medical condition to ensure you qualify for a viatical settlement instead of a life settlement. Your life expectancy must be no more than two years to qualify for a viatical settlement.
Once confirmed, the company will locate a buyer for your policy. If you accept the offer, the buyer will pay you cash for your policy. The amount you’ll receive will be more than the cash value of the policy, but it will be less than the benefit your beneficiaries would receive when you pass. When you sell your policy, the new policy owner will become the beneficiary.
What are the benefits of viatical settlements?
Obtaining a viatical settlement ensures you can access a large amount of cash quickly. Viatical settlements are tax-free, which means you do not need to worry about setting aside any cash for tax purposes.
The new policyholders will also assume responsibility for any remaining policy payments owed. Consequently, you can reduce your monthly expenses if you were still making payments on your insurance plan. No restrictions govern how you can use your viatical settlement money.
Can you use your viatical settlement funds to travel?
You can use your viatical funds to travel as much as you’d like. Whether you have your heart set on a vacation in Hawaii, a trip to the Grand Canyon, or plan to visit dog-friendly destinations for vacations, you can spend your money any way you choose.
Your funds can also be used for travel essentials for you and your family. The men’s bamboo travel T-shirt is excellent for traveling because it’s wrinkle-free. This means you won’t have to worry about unpacking wrinkled shirts you need to iron when you reach your destination. You’ll also appreciate the fact that it’s breathable. Breathable fabrics are more comfortable to wear and prevent sweating. You’ll also appreciate the loose collar and relaxed fit, which is ideal for traveling by plane.
Once you reach your destination, you can use your funds to eat out or enjoy local entertainment and activities. If you’ve always wanted to go whale watching or ride in a hot air balloon, you can use your fund to fulfill those dreams.
Are there other ways you can use your viatical funds?
Since you can use your funds for any expenses you choose, you can use your viatical settlement to cover any costs. If you want to use your money to finance new treatment options, you can do that. You may also want to use the funds to settle your debts to ensure your family doesn’t have to pay those bills after you pass away.
If you have dependents, you may opt to pay off the mortgage on your home or invest in a trust fund to cover their expenses until they’re adults, and set aside money for college.
You can also choose to leave a legacy to benefit others. You may want to use some of your money to create a scholarship fund to support students pursuing postsecondary education.
Viatical settlements are tax-free cash payouts individuals receive when they sell their life insurance policy. The seller is free to use the funds they receive to travel. They may also decide to use their funds to cover other expenses or leave the money to their dependents.
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