Over 600,000 Americans are expected to die from cancer in 2020, while 1.8 million Americans will be diagnosed with cancer. Cancer is the second-highest cause of death in the United States along with other leading causes of death including heart disease, diabetes, respiratory diseases, and pneumonia. Though cancer research is improving every year, this disease, like many others, is unpredictable.
As people age, their chances of being diagnosed with a severe medical condition increase. A severe diagnosis can affect a person’s quality of life and ability to work. Illness can make it challenging to afford the care required to treat the disease and cover your living expenses. Medications for chronic illnesses can cost hundreds of thousands of dollars each year, and the financial strain can prevent some people from pursuing treatment.
If you are coping with a severe medical diagnosis and weighing your financial options, consider talking to a viatical settlement broker to determine how to receive funds for your life insurance policy.
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Viatical Settlements
Life insurance policies pay benefits to the beneficiaries after the death of the policyholder. The funds can be used to pay for remaining debts the policyholder had, cover the costs of a funeral, or provide for dependents.
A viatical settlement refers to the sale of your life insurance policy before your death. Although policyholders can opt to cash in their life insurance policy for a buyout rate, they will typically receive more money through a viatical settlement. Viatical settlements are available for individuals who have a terminal illness. Once the buyer acquires the policy, they are responsible for any remaining policy costs. They also become the beneficiary of the policy and receive all of the benefits when the original policyholder passes away.
If you are considering a viatical settlement, you can opt to talk to a viatical settlement broker or a viatical settlement company.
Viatical Settlement Brokers
A viatical settlement broker is an individual who is licensed to arrange the sale of your life insurance policy. They receive a commission in exchange for soliciting bids from potential buyers. They help clients receive the best price for their policy, and they facilitate the purchase.
Viatical Settlement Companies
Viatical settlement companies, such as American Life Fund, specialize in arranging viatical settlements for their clients. They work directly with policyholders. Viatical settlement companies do not charge extra fees.
Benefits of Viatical Settlements
Viatical settlements provide a cash payout. Viatical settlement companies work to ensure you will receive your money as quickly as possible. You do not have to pay taxes on your settlement, which ensures that you have the full amount of the settlement available to cover your personal and medical expenses.
Expenses that Viatical Settlements Cover
Once you receive a viatical settlement, you are free to use the money however you choose. It’s common to opt for a viatical settlement to cover medical expenses and debts. You may also opt to pay off your mortgage or set up trust funds for your children’s education.
You may require long-term care due to your illness, and opt to use your viatical settlement funds to pay for in-home care or the cost of a new treatment. A new drug or experimental treatment for cancer or other life-threatening diseases can be costly. Some individuals may opt to forego medical care due to the nature of their diagnosis and use the money to take their family on vacation or travel the world before they pass away. If your illness has irrevocably shortened your life expectancy, then it may be worth using this money to have once in a lifetime experiences with loved ones.
Other Financial Assistance
While some patients may qualify for groundbreaking clinical trials that may cover the cost of their effective treatment, most patients must pay for their medical treatment. Patients may qualify for government assistance and be eligible for Medicare or Medicaid. Some patients may also be eligible to receive disability benefits.
Faith-based organizations and organizations such as the American Red Cross may also provide financial resources. They may offer financial help to cover the cost of accommodations and provide transportation to medical appointments. American Life Fund and CancerCare offer financial aid to cover personal and medical expenses. Patients may also be able to access affordable prescriptions through pharmaceutical patient assistance programs.
