Not the most pleasant aspect of the insurance world: the viatical settlement allows a critically ill individual the option to sell the value of their life insurance policy to a private or third party in return for immediate funds for medical expenses.
Generally, a viatical settlement is settled between an individual and a third party insurance company whereas the outstanding value of the life insurance policy is bought and an agreed upon amount of funds is given to the individual. These funds are typically used for medical procedures and can only be settled if the beneficiary of the life insurance policy signs off on it.
The reason why the viatical settlement is so unsettling, no pun intended, is the fact that the purchaser of the used life insurance policy will lose out on their purchase if the individual does not pass away immediately. The longer the individual lives, the less value that the purchased life insurance policy holds.
However, the viatical settlement is an attractive option for those as a last resort for medical funding. If they do not have the assets to pay for treatment and are critically ill then their welfare suddenly overrides the conveience that a life insurance policy provides for their loved ones.
Visit InsuranceAgents.com today to learn more about the viatical settlement of a life insurance policy.
