By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    6 Essential Strategies for Improving Your Medical Practice
    January 25, 2023
    Staying Positive While Living with Mesothelioma
    January 24, 2023
    The Many Health Benefits of Being Outdoors
    January 17, 2023
    How to Assess a Safe Placement of a Nasogastric or Nasoenteric Tube and Its Complications
    January 19, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Here’s What To Know And Expect About The Future Of Healthcare
    January 22, 2020
    How Your Healthcare Facility Can Ace Their Patient Safety Survey
    February 5, 2021
    Consider These Benefits Of Concierge Healthcare For The Elderly
    July 7, 2020
    Latest News
    Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game
    January 25, 2023
    9 Hospitals That Have Introduced Green Initiatives
    January 25, 2023
    Why a Health Retreat Can Be the Best Medicine
    January 12, 2023
    Best Money-Saving Tips for Health Managers
    January 12, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: The What, Why, and How of Viatical Settlements
Share
Sign In
Notification Show More
Latest News
ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology
digital dental x-ray
How Does A Digital Dental X-Ray Work?
Dental health
Aa
Health Works CollectiveHealth Works Collective
Aa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health care > The What, Why, and How of Viatical Settlements
Health carePolicy & Law

The What, Why, and How of Viatical Settlements

Sean Mallon
Last updated: 2020/11/09 at 6:15 PM
Sean Mallon
Share
6 Min Read
SHARE

When you’re seriously ill, life can become difficult. In addition to the personal trauma of illness and the physical symptoms that you’re dealing with, you have to worry about money. Tragically, health care costs are very high in our country — so high, in fact, that they cause many bankruptcies. That’s not what you want for your family. You care about your loved ones, which is why you have been paying into a life insurance policy. Now you’re afraid that your medical needs will rob them of their wealth. So what can you do? One option is a viatical settlement. Below, we’ll lay out what a viatical settlement is, when and why you should consider it, and how it could benefit you and your loved ones in the long run.

Contents
What is a viatical settlement?Why should you consider a viatical settlement?How a viatical settlement could help you and your family in the long run

What is a viatical settlement?

So what, exactly, is a viatical settlement? A viatical settlement is an option for folks who have life insurance policies and are seriously ill. A viatical settlement allows policyholders to exchange their eventual insurance policy payout for cash up-front. In essence, you’ll be selling your life insurance settlement before you get it. Naturally, you’ll be getting a bit less than your eventual payment would be worth — that’s why this makes sense for the folks on the other side of this transaction. As for why you would want to cut this deal, that brings us to our next section.

Why should you consider a viatical settlement?

A viatical settlement isn’t something that’s available to everyone. It’s designed to be of use to people who are seriously ill. When you’re very ill, medical bills can be mounting faster than you can pay them off. A viatical settlement is an answer to this dilemma: It can give you an influx of cash now, when you need it. The why of a viatical settlement, then, is that you are sick and need cash. But it’s also important to understand how a viatical settlement can help you in the long run. After all, when you invest in a life insurance policy, the plan is pretty straightforward: After you’re gone, your family will receive money from the life insurance provider that will help them handle things like funeral expenses and do things like replace your regular income. It’s a safety net that you want for them — so how does it help to swap something like that for cash now? Won’t the missing money hurt later on? Not as much as the debt can hurt you by then. Let’s explore the math.

How a viatical settlement could help you and your family in the long run

If you weren’t dealing with any big expenses, you would have no reason to exchange your life insurance payout for cash now. But you are, and the fact of the matter is that, in some cases, the math can work out such that a viatical settlement is actually much better for your family in the long run. Let’s return to the situation in question: Viatical settlements are for seriously ill people. Medical bills are mounting. It’s hard to make ends meet. If you choose to skip the settlement so that your family gets the life insurance payout later, you’ll have to figure out how to do things like pay your credit card bill and keep up with your car payments. Fail to do that, and you may find yourself losing valuable assets (through repossession, for instance) and trapped in the cycle of debt (in which loans are taken out to pay other loans, interest devours your free cash, and the principal amount of loans never go down). If this sort of stuff happens, your family could be deep in debt by the time that you pass away. Then they’ll get the life insurance payout — but will it be enough? By then, things may have gone too far. The reason viatical settlements work, then, is because they allow you to knock out debt before it can grow. In this sense, money now can be worth more than money later. In the same way that investing can grow your wealth at an incredible pace, debt — in which interest and compound interest work against you, instead of for you — can mount insanely fast. Knocking it out now can be by far the better financial choice for your family, and a viatical settlement can be the best way to do that. Speak to a financial advisor to learn more.

More Read

getting into medical school

6 Tips for Getting Into Medical School

Do You Need Life Insurance? What Does It Cover?
5 Ways New Technology is Revolutionizing Health
Are your Health Workers Properly Protected?
Your Study Path in Nursing: Hardships in Education and How to Overcome Them

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Sean Mallon May 3, 2019
Share this Article
Facebook Twitter Copy Link Print
Share
Previous Article Try These Powerful Ayurvedic Tips To Stay Healthy
Next Article How To Choose The Best Prescription Glasses For Your Vision Needs

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

ABA therapist
Everything You Need to Know About Applied Behavior Analysis
Health January 26, 2023
Small Lifestyle Changes That Can Have A Big Impact On Your Well-Being
lifestyle Wellness January 26, 2023
The Future Of Medicine: How Immunotherapy Is Saving Lives
The Future Of Medicine: How Immunotherapy Is Saving Lives
Technology January 26, 2023
medical practice and technology advancement
6 Essential Strategies for Improving Your Medical Practice
Technology January 25, 2023

You Might also Like

at-home genetic testing method kits
Global Healthcare

Simplifying the Genetic Testing Process: How At-Home Kits are Changing the Game

January 25, 2023
green hospitals
Hospital Administration

9 Hospitals That Have Introduced Green Initiatives

January 20, 2023
benefits of going on a health retreat
Global HealthcareHealth

Why a Health Retreat Can Be the Best Medicine

January 12, 2023
saving money in healthcare
BusinessGlobal HealthcareHospital Administration

Best Money-Saving Tips for Health Managers

January 12, 2023
//

We influence million of users and is the most authentic source of information on healthcare business and technology news.

Quick Links

  • About
  • Contact
  • Privacy
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US

© 2008-2023 HealthWorks Collective. All Rights Reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?