Growing older isn’t always easy, but you’ve done everything you can to prepare for your golden years. You’ve worked hard all your life, and you’ve saved as much as you could. You read the retirement advice and did your best to hit the recommended numbers before you called it quits. You’d done enough — you thought.

But life isn’t fair. Many Americans just like you save carefully for retirement only to find that their plans are derailed by illness and medical expenses. The unfortunate truth is that medical bills can reach such staggering totals in the United States that even the most careful savers are unlikely to be able to pay out of pocket.

And that can get you into real financial hot water in retirement because, of course, you’re no longer working and earning new cash. But there may still be a way out of this mess. One of the options that you’ll want to consider in a situation like this is a viatical settlement.

What is a viatical settlement?

Your wealth isn’t just about your cash; it’s also about your assets. Those assets include stocks, bonds, and other relatively liquid things. But they also include non-liquid assets like your house and even your life insurance policy. Believe it or not, there are ways to get cash value out of these assets and get the money you need in order to pay off your bills and stay afloat.

So, first things first: what is a viatical settlement? A viatical settlement is an agreement under which you sell your life insurance in exchange for cash now. The idea is pretty simple: since you won’t be around to enjoy your life insurance payout, and since you need cash now, you’re willing to part with the former in order to get your hands on the latter.

On the other side of the equation is an organization that is essentially making an investment. The amount of cash they’ll give you is less than what your policy will someday pay out. The payout you receive will depend on various factors, so the offers available to you will vary depending on your health and your policy.

When a viatical settlement makes sense

If you’re financially secure, you may not need a viatical settlement; you could just live off of what you’ve saved. Your heirs and insurance beneficiaries can later enjoy both the wealth that you pass on and the payout from the life insurance policy. But what if you’re not so secure right now?

Medical bills can wreak havoc on your financial situation. And getting trapped in the cycle of debt could obliterate your worth, leaving your heirs with nothing but debt. In this case, taking the cash now could salvage your finances and allow you to live in comfort. And it might even protect your estate so that your heirs enjoy more wealth from you now than if you had held onto your policy.

Money is worth more today than it is tomorrow, and sometimes a viatical settlement can be the right financial strategy. If you’re unsure, consider talking with a financial advisor about your options. An expert who is familiar with your unique situation can help you make the best decision for you and your loved ones.

Source : best angle grinder 2020

Author's Bio: 

Jeff Mark is a professional writer and blogger.
Source : throw up