Receiving the diagnosis of a terminal disease inevitably impacts every single aspect of one’s life. In addition to the physical aspects of your health, there are also emotional, psychological, and social implications. You start thinking about the amount of time you have left, how you’re going to spend it, and what will happen to your family members and loved ones when you’re gone.
Unfortunately, you may also encounter immediate, expensive, and most certainly unplanned financial burdens due to your diagnosis. Travel for medical treatments, reimbursement for lost wages, medications, home health care, and other expenses that might not be covered by your health insurance policies can quickly mount.
Perhaps you’d like the peace of mind of paying off existing financial obligations like a mortgage or credit card debt, or you want to pay for your funeral costs rather than leaving your dependents with the burden of these expenses. Or maybe you want to complete your bucket list with a last family vacation or second honeymoon to spend quality time with your spouse.
Regardless of your motivations or needs, you might find yourself looking at various options for accessing cash to get you and your family through this trying time. One often-overlooked resource for funding is your life insurance policy. Many policies, including whole life insurance and universal life permanent policies, build cash value as you pay your premiums. Borrowing against these savings is an option, as well as withdrawing the funds stored in your policy’s reserves. However, there’s a third option that is especially relevant for someone facing a medical crisis: a viatical settlement.