Advocating On Behalf Of The Terminally Ill:Viatical Settlement Broker
An unfortunate reality that many people experience is losing their life insurance policy in the middle of the battle for their lives with a terminal or chronic illness. There is a great deal of financial stress that occurs with a terminal illness. That's the reason thousands of families end up lapsing on their life insurance policy, in the midst of financial and emotional turmoil. As Beacon Life Insurance brokers, we don't believe that you should be left without the insurance you so desperately need. A life insurance policy can be of extraordinary value when you are critically ill. Rather than letting it go and losing out on potential money, you can find out about settling and selling your insurance policy for a lump sum. With the aid of a viatical settlement broker, you may be able to get money for your life policy that can be used for needs right in the present.
Viatical Settlement As Opposed To Cash Value Surrender A life settlement is normally only used in very specific circumstances. When someone is over the age of 75 and is still paying for life insurance that they can't manage or isn't suitable for their needs, they may want a life settlement as an alternative. The distinction between a viatical and life settlement is illness. While there are still terms surrounding life settlements, disease has absolutely nothing to do with it. Rather than simply allowing a policy someone has paid out into for many years to lapse, a life settlement provides a lump sum to utilize now, as an alternative to waiting until maturity. This is particularly useful if there is no longer a beneficiary you want your death settlement to go to. Make sure to always consult with a financial advisor prior to selling your life policy. Understanding all the impacts that this can have on your finances is absolutely necessary before following through on any settlement possibilities.
There are two major reasons that people get a viatical or life settlement. A viatical settlement is a way to get more from your life policy than the cash surrender value or accelerated death benefit would get you. Nevertheless, this varies in each situation. When you are chronically ill, it implies you are not capable of caring for yourself in two significant ways that impact your daily life. If you are too sick to get dressed by yourself, use the toilet yourself, bathe yourself, or feed yourself, you are considered chronically ill. A terminal illness is qualified as such when there is acceptable cause to believe that a person will not live a lot more than two years with their disease. When these criteria are met, you might be able to get a viatical settlement for your life insurance policy.
Getting Out Of Financial Ruin When You're Terminally Ill A viatical settlement involves more than just you and your insurance provider. When you hire a viatical settlement broker, their job is to act on your account, find you an established settlement company, and assist in the sale of your life policy to that company. You get a lump sum that is below the death benefit, and they take control of your premium payments, own the policy and receive the death benefit. This payment is more than the cash surrender value would be, but is below the death benefit of the policy. As an alternative to waiting for your family to receive money after death, a third party company provides you with money right now, allowing you to pay for essentials, or even to do something on your bucket list. Then they receive the death benefit when the insured dies rather than the family members. Obviously, this is not always the best financial option, terminally ill or not, and should be reviewed with financial experts first.
Knowing what to do with a life insurance policy you can't manage is tough. The majority of people can not pay the treatments required for terminal illness, and particularly not over a lengthy time period. So many people end up stretched thin when they can't work, have growing medical expenses, and yet long to do something special for their family members. That is what makes viatical settlements an attractive option. Instead of having to wait to obtain a death benefit, and as an alternative to just lapsing on a policy, people have the opportunity to basically cash in and get a lump sum now. However, a viatical settlement is a critical decision for people, and it should always be completed with the most information available.
Rather Than Giving up Your Policy There are other ways to get your life insurance money, such as via cash value surrender, death, or the maturation date of your policy. However, a viatical settlement might be able to provide you with more money. For the critically ill who are unable to manage premium payments or without a beneficiary to inherit a death benefit, viatical settlements can be very helpful. As opposed to settling for a small lump sum or letting go of a policy when you can't pay for it, a viatical settlement provides a third option for those who are sick. These sums are usually free from tax. However, you always want to talk to an expert first. Few people qualifies for a viatical settlement, so it's vital that you consult with a professional brokerage, such as Beacon Life Insurance brokers who can further advise you.
The term viatical is extracted from the Latin word "viaticum." This means "provisions for a journey." For those people who are terminally ill, that kind of financial help is precisely what is needed. The last thing that people need in addition to health issues is financial pressure. More often than not, illness creates incredibly challenging financial situations. Getting access to funds by selling your life policy can provide tremendous alleviation. A lump sum when you need it most is often priceless to those who are terminally ill.
A Viatical Settlement Isn't For Everybody In whole life or permanent life insurance policies, there is a sum of money you can aquire called a cash surrender value. This is done by terminating the policy voluntarily, and before the maturity of the policy is reached. Whole life policies have a percentage of premium that gets saved, which is what you receive when you surrender the policy prematurely. While a viatical settlement can normally get you more, it varies depending on the specifics of your policy. Sit down with an expert to determine whether cash surrender value or a settlement makes the most sense for you personally.
There are pros you can speak with who can advise you about the benefits and drawbacks involved with viatical settlements. A lot of people who get a viatical settlement report very positive experiences. However, you need to know that the lump sum you obtain is suitable, and that you have thought through the financial implications of doing this. Viatical settlement brokers will help provide professional assistance, as can financial advisors, and tell you the best alternatives for you and your family members. Viatical settlements are yours to do with as you wish. Pay for bills, replace income, get more treatments, or even check off some things from your bucket list if you would like. Check out the provisions of your policy prior to deciding to sell.
A life insurance settlement is not to be taken lightly. Only hire the most trustworthy brokerage you can find. Additionally, you will need to provide information regarding your medical records, healthcare providers, and select a settlement company to utilize. There is massive benefit in hiring a broker as opposed to going straight to a settlement company. If you work with Beacon Life Insurance brokers, they make certain that only institutionally funded, licensed settlement providers are solicited to take over your policy, which means you will acquire the funds from a reliable, reputable company. Once you have a new policy owner and beneficiary chosen, you can have access to your funds within days, giving you the opportunity to pay off bills, do something unique with family, or supply alternative income. When you need money, a viatical settlement can be an extraordinary alternative that provides you funds when you need it most.
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