Viatical Settlement vs. Life Settlement
Viatical Settlement vs. Life Settlement
If you have researched selling your life insurance policy for immediate access to cash, you may feel confused about the difference between a viatical settlement and a life settlement. While both offer you more than the cash surrender value of your policy, they have different qualifications and benefits. We highlight the differences between the policies and how to choose the best one for you below.
Why Would Someone Want to Sell a Life Insurance Policy?
People choose to sell their life insurance policies for a variety of personal reasons. One of the most common ones is that they can no longer afford the premium increases that come with age. Some people have a lot of debt from healthcare or long-term care costs and would rather have access to the funds now than for the money to go to a beneficiary after they die. Others have received a diagnosis of a life-threatening illness and want to receive the best care money can buy. This allows them to enjoy time with their family to a greater degree.
It can be disheartening to surrender a life insurance policy and receive nothing after faithfully paying premiums for many years. Selling the policy seems like a much better option, even when you know that you will not receive the full benefit for it. You receive immediate cash and are free to spend it without restriction according to your own needs.
Viatical Settlement vs. Life Settlement
The primary eligibility for a viatical settlement is that you have life-threatening illness. Not only will choosing a viatical settlement agreement give you the money you need know, it will also provide you with reassurance that your loved ones will not have to bear the financial burden of your illness.
A life settlement, on the other hand, is geared toward healthier people who do not have a need for or can’t afford their life insurance policy. It can provide them with funds to pursue interests such as traveling in addition to money for healthcare. The minimum age requirement for a life settlement is 75. You must also have a policy valued at $150,000 or more.
When you no longer need or want your life insurance policy, selling it through a life settlement option can help to make your retirement years more financially comfortable. It can give you disposable income that you would not have had relying on your monthly social security check and retirement savings alone.
The Benefit of Working with a Life Settlement or Viatical Settlement Company
Locating a buyer for your life insurance policy can be challenging. Most people turn to us because they have no idea where to begin. This is a much better option than surrendering your life insurance policy and getting nothing in return because you don’t want or need it but have no idea what to do.
Sell My Life Insurance Policy exists to bring buyers and sellers of life insurance policies together. The entire process can take just days compared to the weeks or months it might take when trying to find potential buyers on your own.
As our client, you receive several offers at the same time and you can select the one that best meets your financial needs. Once you receive a settlement check from the buyer, you no longer have to worry about paying the premiums to keep up on a policy you no longer want or need. You are always the one in charge with this process.