Viatical settlements are similar to Life Settlements but involve selling a life insurance policy by someone who is terminally ill, usually with a life expectancy of less than two years. In a viatical settlement, the seller receives a lump sum from an investor, typically a percentage of the policy’s face value that could be as much as 70-80%. The investor becomes the beneficiary and will receive the death benefit upon the policyholder’s passing.
This option allows terminally ill individuals to access funds for medical expenses, experimental treatments, or other financial needs while alive. The lump sum can also enhance their quality of life, allowing for travel, time with loved ones, or easing financial burdens.
Viatical settlement firm offer financial relief for end-of-life expenses and investment opportunities for buyers, potentially yielding higher returns than traditional options. The market is regulated to ensure transparency and fairness.
While similar to life settlements, viatical settlements are specifically for terminally ill individuals, providing crucial financial support and a unique investment opportunity. With attention to regulations, they can be a valuable option for those needing financial relief. It is important to consider all options and make informed decisions for end-of-life planning, ensuring individuals have the resources and support to live comfortably and with dignity in their final days.
