Most people have never heard of a viatical settlement. It’s one of those things that you don’t learn about until it’s relevant to you. And if you’re finding this page, it’s most likely now relevant to either you or someone you love.
Viatical Settlement: Cashing in Your Life Insurance
Did you know that you can sell your life insurance policy? The owner of a life insurance policy (viator) can receive a lump sum payment in exchange for their policy, from a third party viatical settlement broker. The settlement is not equal to the death benefit of the insurance policy, but is greater than the case surrender value.
As the sole beneficiary, the buyer (viatical settlement broker) then becomes the new life insurance policyholder, pays the ongoing premiums, and will potentially collect the death benefit if the viator (original policy owner) passes.
Viatical Settlements Offer Financial Peace of Mind
Viatical settlements are completely legal. For those dealing with a new, scary diagnosis of cancer (or other serious or potentially-terminal illnesses), this mostly unknown practice offers peace of mind. Anyone considering holistic, alternative cancer treatment knows that insurance does not cover what is needed to heal safely and naturally. Having the ability to choose the treatment you want is invaluable. As we always say to our patients, your emotional state can affect your health just as much (if not more) than anything physical.
For anyone having trouble paying medical bills, long-term ongoing treatments, or holistic, alternative care, selling your life insurance policy could be the answer.
For a more in-depth walk-through of how to sell your life insurance policy for cash (Who Qualifies for a Viatical Settlement?, How Can You Use a Viatical Settlement Cash Payment?, How Quickly Can I Get a Viatical Settlement?, How are Viatical Settlements Different from Other Cancer Financial Resources?, Who Provides Viatical Settlements?) visit AmericanLifeFund.com’s page on Viatical Settlements.
Are Viatical Settlement Taxable as Income?
Viatical settlements are completely tax-free. HIPAA (Health Insurance Portability and Accountability Act) exempted viatical settlement funds from income and capital gains tax in 1996. Before this viatical settlements were taxable, however now you can get cash from your settlement without having to worry about paying taxes.
For more detailed information on Viatical Settlements and Taxes (How to File Your Viatical During Tax Season, Types of Cancer Financial Assistance that are Taxable) visit AmericanLifeFund.com’s page on Viatical Settlements and Taxes