When you’re faced with a serious illness and need financial help in order to deal with medical bills and other associated costs, there are several options that can help you get the money you need quickly. 

One of the less-frequently discussed options that can give you access to immediate funds are viatical settlements, which is largely due to the fact that these settlements are typically reserved for those whose lives are heavily impacted by their illness. If you are dealing with a life-threatening disease or chronic health issues and are in need of quick financial assistance, the following is a breakdown of what you need to know about viatical settlements. 

In a viatical settlement arrangement, an individual dealing with a terminal disease will sell their life insurance policy to settlement companies like American Life Fund who will pay them cash upfront in return for their policy. In order to understand why this is possible, it is important to understand the nature of the investment. Those with a terminal illness know that they have a shorter life expectancy and can use this to their advantage when they choose a viatical settlement as an option. If you anticipate that you may pass soon, your life insurance policy can often prove profitable to certain investors as they will receive the full amount of your policy upon passing. The more coverage your policy provides you, the more money you can expect to receive when you look to sell your life insurance policy. In some financial situations, this is an option that you may need to take advantage of. 

Choosing to pursue a viatical settlement depends entirely upon your personal situation and needs. For example, imagine you purchased a life insurance policy earlier in life when your children were young and you anticipated that you may need it in the future. If your children are grown and financially stable and there is no longer a need for a life insurance policy, a viatical settlement can instead provide you with the cash that you need to handle personal expenses that may be critical as you deal with your terminal illness. That said, it is important that you evaluate all financial avenues before you decide to sell your policy, as this is often a last-minute option for those who need the money. 

The biggest risk associated with a viatical settlement is that you are removing all beneficiaries from your policy when you sell it and they will no longer have access to that money. Make sure that your family will not need this money before you decide to sell the policy. Other additional considerations you should make before deciding to pursue a viatical settlement include learning more about the taxes that you may have to pay when you receive your settlement, whether or not creditors could claim your settlement, if receiving federal benefits impacts the ability to sell your policy, and what medical steps you will need to take in order to provide periodical proof about the state of your health. You should only choose to sell your life insurance policy when you have learned about all of the small details involved in the process. 

Receiving medical care for your terminal illness can be expensive, and this doesn’t take into account the other costs of living that you have to manage along with your medical bills. If you need money to deal with these expenses, have an unneeded life insurance policy, and have exhausted your other options, pursuing a viatical settlement can be the best way to get a large amount of money quickly.