Can Viaticals Be Used to Invest in Your Loved One’s Future?

Can Viaticals Be Used to Invest in Your Loved One’s Future?

- in Finance
Comments Off on Can Viaticals Be Used to Invest in Your Loved One’s Future?

A viatical settlement allows an insurance policyholder to sell their life insurance to a third-party in exchange for a one-off lump sum cash payout. This cash payout is usually less than the insurance policy’s face value (this refers to the death benefit of the insurance policy), but more than the cash surrender value (this refers to the money the insurance company pays the policy owner when they decide to terminate their insurance policy).

Because the insurance policy buyer takes up the payment of the insurance premiums, the sale of a life insurance policy improves the financial situation for people facing financial difficulties, especially those battling terminal illness. If you are struggling to meet the cost of medical expenses or simply cannot afford to finance your insurance policy by paying premiums, a viatical settlement can help free up any debt or other financial commitments that you may have to your insurer. This financial freedom then allows you and your loved ones to focus on the things that matter to you.

Licensed viatical settlement brokers work together with viatical settlement companies to sell and negotiate on viatical settlement contracts. If you wish, you can skip the viatical settlement broker altogether and contact a viatical settlement company directly. If you are an insurance policyholder looking to take part in a viatical settlement transaction, enlisting the services of a trusted viatical company like American Life Fund is a great way to start. American Life Fund will help you close on your viatical settlement within days. This urgency ensures that you can access your payout as soon as you need it.

After the sale of a viatical, you can use the money earned to help advance the lives of those you care about. Keep reading as we explore three ways in which you can put your viatical settlement into good use.

1. Keep up with mortgage/rent payments.


Taking care of multiple medical expenses may make it difficult for you to keep up with your other financial responsibilities. Most people find it difficult to meet their biggest financial obligations, which for most people, might be rent and mortgage payments. Falling behind on a mortgage payment not only affects your credit score but can also affect your living situation. If you cannot keep with your monthly payments, you could go into default and face foreclosure.

On the other hand, if you cannot keep up with your monthly rent payments, you and your loved ones may run the eviction risk. Depending on where you live, some state laws allow landlords to immediately file for eviction after the rent is late. In most cases, the eviction process can go along faster than the foreclosure process. The prospect of losing your home is a scary one and may add to the psychological stress of living with a terminal illness or chronic condition.

While the money made from a viatical transaction may be used to offset pending medical expenses, the fact that it is tax-free means that whatever is left from handling any pending medical expenses can go towards financing your mortgage and making rent payments. In this way, you ensure that your loved ones are safe and well cared for in the years to come and that they can live stress-free without worrying over a living situation.

2. Allows them to keep paying their bills.


Besides helping you and your loved ones pay off heftier bills like medical expenses and the mortgage, the proceeds from a viatical settlement can help you keep up with smaller daily bills that help sustain your life. You can use this lump sum to keep the lights on by paying for electricity, gas, car insurance, and other utilities.

Living with a chronic illness puts obvious stress on one’s mental, physical, and emotional health. If you can afford to, allow yourself and your loved ones some luxury. In this time of COVID-19, online shopping has grown more popular than ever. Taking advantage of this, you can browse online car dealerships and go shopping safely during Christmastime for a newer or better car model.

3. Help them have job security.

Oftentimes, having a chronic condition will mean needing to have a full-time caregiver by your side, and in most cases, this falls on a close family member. If they are still keeping a nine to five job, the proceeds from a viatical settlement can help them take time off work or even consider entrepreneurship. A great way to show your reciprocity can be through allowing them the freedom to start a business venture that can allow them to keep their own hours.

Additionally, if you live in a small town, there are many small-town business ideas from which they can choose from and establish from the comfort of their home. A small baking business can be a great way to generate additional income-should they need or allow them some form of financial anatomy. Should they accept your financial token, they can use this to start capital for a hair salon or barber business, make and sell jewelry, or even a dry cleaning service. Most successful entrepreneurs tend to start their businesses from their homes as they juggle other life responsibilities. Knowing this, and with your help, your loved ones can still earn a proper living while offering care to you while you need it the most.


As a viatical settlement company, they are easy to work with and will walk you through the entire process. First, they will help you put together all the relevant work documents such as medical records, information on death benefits, and any other paperwork that may be required from you. They will also help you find the best deals and rates on your viatical settlement, all the while helping you ascertain if the offer you’re receiving is in your best interest. To find out if you qualify for viaticals from American LIfe Fund, visit their website to receive a free quote.

You may also like

Storage Unit: Make the Most out of It with These Tips

You decided you wanted to move some of