There is nothing easy about having a life-threatening illness. At a time when you feel weak from treatment and desire to spend as much time as possible with your family, you still need to deal with financial obstacles. Besides obtaining the necessary funds to pay for your treatment, you may want to improve your quality of life in general. Viatical settlements are one way to obtain the funds you need by selling your life insurance policy. Additionally, there are other financial options to consider.
What is an Accelerated Death Benefit and Should I Consider It Instead?
If you have a life insurance policy, it may come with a provision known as an accelerated death benefit (ADB). With an ADB, you receive a portion of the death benefit now and your beneficiaries receive the remainder of the death benefit after you pass away.
There are some drawbacks to consider if you are thinking of pursuing an ADB. Firstly, due to strict eligibility requirements it is often very difficult to qualify an ADB. An ADB requires a physician to certify that you have been diagnosed with a terminal illness that meets the minimum life expectancy required by the insurance carrier. The minimum life expectancy required for an ADB may be as little as six months. Secondly, most insurance carriers charge hefty administration fees to process an ADB, reducing the amount you receive from this transaction. Furthermore, the proceeds from an ADB may be subject to taxation. These are all important factors to take into account when considering an ABD for your financial needs.
Should I Consider Taking Out a Bank Loan or Selling My Valuables?
While you can certainly consider applying for a bank loan or special financing such as a home equity line of credit, consider that the payment obligations are likely to last for a while. This could potentially cause a financial burden, especially if you’re unable to work and earn an income during your treatment.
Selling valuable items such as jewelry or a coin collection is a highly personal decision. This can cause hard feelings among family members who expected to inherit the item or who have a sentimental attachment to it now. Be sure to have an honest discussion with your family members about your intentions before you make anything available for sale to others.
What Are the Basics of Viatical Settlements?
When you enter into a viatical settlement agreement with American Life Fund, we buy your life insurance policy for an amount larger than its current cash surrender value but less than the policy’s net death benefit. We become the owner of the policy and you receive a lump sum for your policy to spend as you see fit.
Are There Any Variations on Viatical Settlements?
One consideration policyholders have when researching viatical settlements, is whether they will be able to secure funds for their beneficiaries to receive once they pass. At American Life Fund, we provide the option of a back end agreement. This allows the policyholder to leave a portion of the policy amount intact for their benefactors. Once the insured passes, we provide the beneficiaries the agreed upon lump sum. This is a great way to benefit from your life insurance policy now as well as in the future.
To learn more about your financial options, please contact us today at 877-658-1360 or by completing our simple online form to immediately see if you qualify for a viatical settlement.