According to the Centers for Disease Control and Prevention (CDC), the most common causes of death include cancer, heart disease, pneumonia, stroke, Alzheimer’s disease, and diabetes. Although the risk of suffering from these health conditions increases with age, people in all age groups can be diagnosed with terminal illnesses.
In the United States, more than 25 million people 60 years of age or older have financial challenges. These individuals live at or below the poverty level and may not be able to afford significant expenses. Individuals with terminal illnesses often have to stop working, and may require expensive medical care or personal care. Consequently, older people and those with terminal illnesses often face significant financial challenges. Fortunately, some options exist that enable people with terminal illnesses to secure funds for their final days.
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Viatical Settlements
One way to secure extra funds is by selling your life insurance policy, otherwise known as a viatical settlement . Individuals who are terminally ill can pursue a viatical settlement contract in order to pay for medical expenses or other end of life care they may need. Viatical settlement providers verify you qualify by establishing your medical condition and locate a buyer for your policy. The buyer will offer a cash buyout price, which the life insurance policyholder will receive as a lump sum. This amount will be less than the amount a life insurance policy would have paid out upon the policyholder’s death, but the policyholder will receive it immediately, and there are no spending restrictions. Viatical settlements enable you to access tax-free cash you can use for your medical or personal expenses.
Once a life insurance policy is sold, the buyer is responsible for any remaining policy payments due. The buyer also becomes the policy’s beneficiary, which means they will receive the death benefits when the policyholder passes away. If you think this may be the solution for you, reach out to a viatical settlement broker to learn more about the possibilities.
Using the Money
You can use the money you receive from a viatical settlement as you see fit. You may opt to pay for medical treatment or pay off your mortgage, which can be an effective way of reducing your monthly expenses. You may also want to prepay for your funeral arrangements to prevent your family from incurring those costs after you pass away.
You can also use the funds to finance renovations. Google “roofer near me” to locate the best roof restoration company in your area. You may only need to repair damaged tiles or may opt to install a brand new roof that will protect your home for you and your beneficiaries to enjoy. Superior roofing companies offer limited lifetime warranties and can offer you the peace of mind that comes from knowing the work is guaranteed to be well done.
Your money can also be used for personal expenses. Investing in plants can brighten your environment and your mindset and may even combat some of your medical symptoms. Houseplants, such as the peacock plant, purify the air in your home by removing chemicals. They also offer additional health benefits, such as reducing depression, anxiety, and stress. The oxygen plants release can also improve your sleep.
If you have dependents, you may also opt to use your funds to provide for them. You can set up trust funds to pay for their care and education. You may also want to take a family vacation and invest in memories your family can cherish.
Other Financial Settlements
Life settlements are similar to viatical settlements. A buyer purchases your life insurance policy, becomes the policy’s beneficiary, and takes on its remaining payment costs. There are some critical differences between life and viatical settlements, however. Any individual can pursue a life settlement, and you do not need to establish that you’re terminally ill to qualify. Unlike viatical settlements, portions of life settlements may be taxable. The amount of money the buyer will offer you will be less than the amount they would pay under a viatical settlement. Since viatical settlements apply to individuals expected to pass away quite soon, the financial risk isn’t as significant because the buyer can expect to receive the death benefits sooner than they would for a life settlement.
