Viatical Settlement vs. Life Settlement
No one likes to think about their mortality. Although it’s a hard topic, life insurance can ensure that your loved ones will be taken care of after your death. However, there’s another side of the coin that not many people mention: settlements.
Maybe you’ve realized that you no longer need your life insurance or maybe you can no longer afford to pay for it. When such a moment comes, you can choose to sell your insurance. This decision doesn’t come easy and discussing your options with a financial advisor in Dallas is paramount to ensure that you will be getting a fair deal.
With that in mind, here’s what you need to know about the distinction between viatical and life settlements.
A viatical settlement represents the sale of an existing life insurance policy. More often than not, people decide to sell their life insurance via this type of settlement when they are terminally ill. The purpose of this transaction is to pay for treatment and not leave the loved ones with a massive debt that can affect their well-being after your passing.
A life settlement is a trade between a policyholder and an interested buyer. Unlike a viatical settlement, the holder of the life policy has a long life expectancy but decides to sell his insurance in exchange for a set amount of cash. He can use this money to pay for treatment in case of an illness. The policyholder can also decide to sell their life insurance if they don’t want it anymore or can no longer afford to pay for it.
Even though it may sound simple in theory, selling your life insurance is not as easy as it seems. That is why it is important to acquire the necessary information and discuss all your options with an expert in this type of settlement.
If you are looking for a financial advisor in Dallas, we at Exemplify Financial are a devoted, experienced, and qualified team that is willing to answer all of your questions and help you get the best deal for your needs.