What is a Viatical Settlement?
Life Insurance Can Help With Cancer Expenses Today – What is a viatical settlement? It is the sale of an insurance policy on the life of the holder. The insurance coverage is sold for an amount that is higher than the money surrender value; but, less than the final entitlement. Viatical Payments primarily are regularly 70-80% of the overall worth of the life insurance policy. On average, Abacus Life pays clients 6-8 times more than the cash surrender value.
You may be wondering how can life insurance be sold and why would you want to sell it. Let’s first look at the reasons why you might want to sell it.
- Medical Emergency to pay for treatments
- Send kids to college
- Home at risk of being foreclosed
As you can see there are numerous reasons why it would make sense to consider selling your insurance policy. Another BIG reason is we have seen cases where the financial situation is so desperate that the policy premium payments are not being made and the policy is at risk of being terminated leaving the policy holder with no death benefit and a lapsed policy.
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Now let’s look at how. In 1911, the United States Supreme Court declared that life insurance is personal property. As such, you hold the option to sell your life insurance just like your home. Each monthly premium you pay on your life insurance builds cash value similar to the equity you build in your home with each monthly mortgage payment you make.
Our goal at Abacus is to provide you with OPTIONS. Options that allow you to take care of life’s issues that may crop up by enabling you with the knowledge to use all available means at your disposal to have the money you need.
In the last ten years, the market has become extremely well controlled. The life settlement marketplace is structured on a state-by-state basis instead of nationally. Therefore, it is the duty of each state’s legislature to make laws that ensure that companies behave ethically. This includes specific licensing and practices that provide strict managing to certify customer safety.
Whoever you choose to work with, you should make sure they have a license and follow the correct guidelines. Here at Abacus, we are happy to say that we are certified for life insurance and viatical disbursements in many different states.
The Right Time to use a Viatical Settlement?
For those individuals who are facing an incurable sickness, a viatical sale can be a solid economic solution. They can receive money to pay for therapeutic treatment or other expenses. It is not uncommon that some customers use their cash to do things on their “bucket-lists” especially if they do not need the life insurance payout for their family to meet financial obligations after they are gone.
With the rising price of healthcare, even people with excellent insurance can find themselves under pressure to stay current with medical costs during a catastrophic or terminal illness. This stress of worrying about bills opposes the objectives of rehab, comfort care, and rest home care. Viatical resolutions can deliver an influx of cash that can help bring bills current or pay for experimental or alternative medications that usually are not covered under the majority of health insurance policies.
If you are on the spot with high-cost medical care, having a problem covering your monthly payments, or simply need immediate income; a viatical payment might be the right choice for you. Obviously, if you are dealing with a medical crisis you need to weigh your options of money now or money for your family after you are gone. At Abacus, we counsel people that anyone contemplating taking a payment to carefully examine their insurance and economic state to ensure they are formulating the correct decision for their circumstances.
If you are in need of cash for a divorce resolution or sending kids to college then it could be a good choice as your level of responsibilities have probably changed. For example, you may have your mortgage paid off, you have less debt and therefore your loved ones need less money for final expenses. You could take a settlement payment, pay what you need to pay, and then buy a smaller life insurance policy to cover final expenses.
If you are not in immediate need, we recommend not taking a payout simply because the payout is less than your family will receive at the end of life payout.
However, if your policy is about to lapse or you wish to surrender it, contact us. Our goal is to assist you in understanding how to make the most of your certificate. If you are part of the Cancer Horizons community take 2 minutes and submit this request form so Ashleigh from Abacus Life can go to work and help with your situation personally. We have been so impressed with this company and their compassion and extraordinary effort on behalf of cancer patients and their families.