Supporting Yourself During A Severe Illness

Have you ever asked yourself “Why would I sell my life insurance policy”?  It is a fair question to ask, especially if one is unfamiliar with the concept of life insurance policies; these are known as viatical settlements.  A viatical settlement is when one ends up selling their existing life insurance policy to a third party, who then provides the seller with a lump sum in return.  This has become an increasingly popular tactic for those looking for money to pay for medical bills, especially when one is fighting sicknesses such as cancer.   

“Viatical” is a word that was derived from the Latin word “viaticus”; it essentially means “provisions for a long journey”.  When facing an illness such as cancer or something equally as serious, money can become an issue.  Paying for treatment of these illnesses is no small task, and it requires a large amount of money over a period of time.  What if you are unable to work? At one point or another, one generally loses time from work in order to undergo treatment, so how do you pay for your bills then?  Viatical settlements, though relatively new as investments go, easily help provide you with the money you need. 

The state of America’s healthcare system ends up requiring those facing severe illnesses to pay a lot of money for treatment.  Standard health insurance just doesn’t cut it at times, and finances are always the impasse for proper treatment.  If you have no other options and are wondering if there is any possible way to make more money, consider a viatical settlement, and sell your life insurance policy to get the cash that you need.

Cancer Costs: What Can Be Done?

The economic impact of individuals who suffer from cancer is very large; according to a study conducted by the National Institutes of Health, in 2008, the overall annual cost of cancer treatment came to about $201.5 billion.  When you put those numbers into perspective, it is astounding what an individual has to pay for treating this disease.  The impact is felt not just in the life of the individual and their loved ones, but indirectly as well; the indirect mortality costs due to loss of productivity came to $124 billion.

If you are fighting off cancer, here is one of the main points to consider as you ponder the future:


-       How Will I Pay For Treatment?


As we touch on the financial ramifications of dealing with cancer, there are two points to look at: the first point is the actual cost of the treatment, and the second point is the potential of lost time at work due to the treatment.  Without a source of money coming in, what can you do?  There is an option: sell your life insurance policy.  You can end up with a cash payout when it is bought by a corporation, and that can be the difference between being able to pay for your medical bills.


-        The Viatical Settlement Process

 Selling a life insurance policy can be performed two ways: The first way is when a company buys life insurance policies directly from an ill individual, using either their own funds or with the money that is received through stock. The actual company then holds the rights to the insurance policy and act as the designated beneficiary of the policy. 

With the second type of viatical settlement, a company acts as a broker who then matches interested parties with a life insurance policy available for the sale, rather than directly purchasing the policy itself.

The best-case scenario is that you end up with a large cash payout, which can be a huge asset when facing a battle against cancer.  The next time you hear someone asking "should I sell my life insurance policy", tell them to go for it.