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| American Funding Specialists |
Viatical Settlements A viatical settlement is essentially the assignment of a death benefit; an arrangement in which a terminally ill or elderly person sells his or her life insurance benefits (policy) for a lump sum payment. In the beginning, viatical settlements were used primarily as a financial option for AIDS victims, with a clearly terminal illness and were unable to get the resources they needed at a critical time. Eventually, victims of other terminal illnesses such as cancer and leukemia recognized the advantages of viating their life insurance policies to pay for current expenses. The elderly often have more money going out than they have coming in. They may receive a few hundred dollars each month from Social Security or a private pension plan, but have several thousand dollars worth of expenses. If an elderly person runs out of funds for medical care or living expenses, and does not wish to part with certain assets such as his or her home, a viatical settlement can be a good source of immediate cash. Benefits of viating a life insurance policy:  Allows the individual to maintain dignity and Financial independence The settlement may be tax free The funds can be used for any purpose |
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