Do Viatical Settlement Companies Put Restrictions on the Proceeds?
One of the many benefits of selling your policy through viatical settlement companies is that there are zero restrictions on how you spend the money from your settlement. Once you receive the funds from your settlement, you can use this money however you like. Our clients have used their viatical settlements in a variety of ways. Learn how the process works and some ideas on how you can use these funds.
Getting a Quote
If you want to see how much you could qualify for, you can start by getting a free quote online. Armed with a quote, you can make a more informed decision about how you are going to use the proceeds. For instance, if you have a loved one who wants to take time off work to spend time with you, you can get an estimate and then see how much work they are able to take off. Depending on your settlement amount, they may even be able to retire early. Similarly, if you are going to use the settlement to pay medical bills, you can also see which of your bills you will be able to pay and determine what you will do with the remaining money.
Finalizing the Deal
Once you have a quote and decide to move forward, you fill out a simple, two-page application. You provide information on your insurance policy and some of your medical records. That gives the viatical settlement companies the information they need to determine your offer. You don’t have to share any information about how you plan to use the funds. In contrast, with many types of loans such as business loans or car loans, you have to let the lender know how you’re going to use the funds.
Receiving the Funds
After you decide to accept the settlement, you sign some final paperwork. Then, the funds are wired to you usually within one business day of the policy ownership being transferred. You can start spending these funds as soon as you receive them.
Spending Your Viatical Settlement
Again, when you receive settlements from viatical settlement companies, you can use the funds however you like. Some of the ways you may want to use your funds include the following:
- Paying off medical bills
- Exploring alternative treatment that is not covered by insurance
- Traveling to see specialists
- Spending time with family
- Taking time off work
- Giving your family members money so they can take time off work
- Going on a dream vacation
- Setting up college funds for children or grandchildren
- Making extra payments to your mortgage company
- Paying off debts
However, that is certainly not an exclusive list. You can do any of those things, or you can spend the money on something else altogether. You get to choose exactly how to use your money.
To learn more about the viatical settlement process, contact us today at 877-226-9836. At American Life Fund, we have helped countless clients become financially stable during this stressful and trying time in their lives, and we would love to help you.