Every day across the United States, some unfortunate soul is receiving the news that their time on this world is coming to an end. It’s sad, but it is also a simple fact of life that someday it will be over. But how we approach death is very important, and what we leave behind is more than the belongings that we cannot take with us. But from a financial point of view, the accumulation and appropriation of wealth will also matter, just perhaps not in the way you would have imagined.
An increasing number of Americans are exploring a different form of life insurance known as a viatical settlement, and relying on these policies to pay for their remaining time in life. But why? What do these viatical settlements offer to people who are about to lose so much more? Most importantly, how should a viatical settlement be spent?
What is a Viatical Settlement?
Before looking into finding a viatical settlement and how to apply for one, such as those that are provided through the American Life Fund, you first need to know what they are and how they work. Firstly, in simple terms, a viatical is not actually a life insurance policy, but more of a transaction that involves a life insurance policy.
The following are ways that a viatical settlement works:
- A life insurance policyholder learns that they have a terminal illness, and only have up to two years to live.
- They sell their life insurance policy to a third-party investor (known as a beneficiary), for an upfront lump sum of which the cash value is less than what the payout of a policy would be (the death benefit) but a significant amount of money.
- The beneficiary continues to pay the life insurance premiums and can claim the death benefit when the original policyholder passes away, but the original policyholder has completely surrendered all involvement from the moment of sale.
Essentially, a person who looks to apply for a viatical settlement is someone who will receive the benefits of their life insurance. The major difference between the viatical and the ordinary death benefit is that the policyholder can use the cash value whilst they are still alive.
American Life Fund viaticals is worth researching online, as many people can be put off by the idea of the cash value payout by the third party/beneficiary being less than the death benefit. But as viatical settlement brokers, the American Life Fund offers a viatical that can be up to 70% of what the payout would have been and have no tax obligations to boot, then it is worth checking them out. But how do you spend this settlement once it is with you?
Be comfortable during the final days.
In most instances, a settlement is usually intended to pay for the necessary end-of-life care that isn’t covered by insurance or accounted for previously. This can be something as complex as medical machines to keep the quality of life as good as possible in the last months, or as simple as an iPod touch to play calming music to help relax.
The main focus will be on comfort. Bedding and sleeping accessories will be the best investment for those who want comfort at their most uncomfortable. Certain illnesses and conditions make some sleeping positions impossible without assistance, and beyond good bedding toppers and pillows, strong memory foam based but firm mattresses could be the difference-maker to a good night’s sleep.
Check out City Mattresses for a range of new sleeping wares that can help no matter what your preferences will be. If you can’t sleep on your back, then stomach sleepers can also find firm options that will assist via memory foam mattress toppers or simply a new cushion or two to keep you steady. You may find that your condition is requiring you to install a new bed, so you may as well take the opportunity to buy new pillows toppers, and mattresses as well.
Some alternative ideas to consider.
Another way to spend your settlement payout after the viatical settlement process is fully completed is to think outside the box. In much of the same vein that a Final Will and Testament will leave certain amounts of money as an inheritance to family members listed, a viatical settlement can provide an extra boost and allow you to see how they benefit too. Take hearing aids as an example. Ear healthcare and the battle against hearing loss can be an expensive one, and although many audiologists and ear doctors are working to ensure that the best hearing aids are provided to those who need them, they are still a secondary market.
Hearing Health USA offers a range of hearing aids, from resound hearing aids that fit the unique shape of your ear, to small “invisible” hearing aids for the outer or inner ear canal. They aren’t the most expensive either, but investing in one on behalf of a relative who is suffering from hearing loss could be a really good way to spend your viatical settlement. Similarly, by spending the money yourself then you can see how it has helped which will not only make you feel good but could potentially help you establish a legacy as well.
But other than these suggestions, it really is up to you. You can rent a van and go traveling, enroll in a college course, or just sit back and relax. The choices are yours and no one else’s to make. Many people have utilized a bucket list as a great option to do as much as they can before they are incapable to do so. With so much focus on public health of late, due to the coronavirus pandemic, there are worse ideas than simply spending for spending’s sake. That said, no one would blame you if you chose to simply invest in experiences. After all, you can’t take it with you, so why keep it.