Families caring for someone with advanced dementia face overwhelming challenges – emotionally, physically, and financially. Accessing cash from life insurance with advanced dementia is one option that can help relieve some of the financial burden. Through a viatical settlement, policyholders can sell an existing life insurance policy in exchange for a lump-sum cash payment. This payout can be used for critical needs, such as memory care, medications, or in-home support, at a time when expenses are often at their peak.
The High Costs of Advanced Dementia Care
The care needs of someone with advanced dementia can be extensive. As the condition progresses, many families must consider specialized memory care facilities or hire professional caregivers to ensure the safety and comfort of their loved one. These costs can quickly add up:
- Memory care facilities often cost between $5,000 and $10,000 per month, depending on location and the level of care required.
- Full-time in-home care can cost hundreds of dollars per day, especially if skilled nursing is needed.
- Additional expenses such as home modifications (safety rails, monitoring systems) and medications can add to the financial strain.
For many families, these expenses can deplete savings or retirement funds, making it critical to explore alternative financial resources.
Turning Life Insurance into a Liquid Asset
Many people don’t realize that a life insurance policy can be sold, much like other assets. A viatical settlement allows the policyholder to sell their life insurance policy for more than its surrender value but less than its full death benefit. The buyer takes over premium payments and becomes the beneficiary, while the seller receives an immediate lump-sum payout.
For those with advanced dementia, the payout amount may be higher because offers are based on the policy’s face value, premium costs, and the insured’s life expectancy. Instead of allowing a policy to lapse or accepting only a small surrender value, a viatical settlement can provide thousands, and in some cases, hundreds of thousands of dollars.
Why Families Choose This Option
Families often turn to viatical settlements because they provide immediate financial relief during a time of pressing need. Here are some reasons why this option may be right for you:
- Freedom from premiums – Once the policy is sold, you no longer have to pay costly premiums.
- Use funds however you need – Money from a viatical settlement can be used for memory care, home care, home medical equipment, or even paying off debts.
- Confidential and quick process – Most settlements can be completed in just a few weeks.
- Larger payout compared to surrendering – Viatical settlements generally offer much more than a cash surrender value from the insurance company.
When Selling a Policy Makes Sense
Selling a life insurance policy isn’t for everyone, but it can be an ideal solution when:
- Premium costs have become unmanageable.
- Your beneficiaries are financially secure and no longer need the death benefit.
- You need immediate funds to cover care expenses and maintain quality of life.
By accessing cash from life insurance with advanced dementia, families can make care decisions based on what’s best for their loved one, not just what they can afford.
Steps to Access Cash from a Policy
The process begins with a straightforward policy review, typically requiring information about:
- Policy type and death benefit – Whole life, universal life, and even certain term policies may qualify.
- Premium obligations – The cost to maintain the policy affects its resale value.
- Health and care needs – Advanced dementia often qualifies under viatical settlement criteria.
If after reviewing this information, value is found and a buyer is interested, you’ll receive an offer that reflects your policy’s value. There is no obligation to proceed, so families can weigh the decision without pressure.
Caring for someone with advanced dementia is emotionally exhausting and financially draining. By exploring a viatical settlement, families can turn a life insurance policy into a financial lifeline. Accessing cash from life insurance with advanced dementia can make it possible to secure quality healthcare, pay for necessary services, and ease the financial burden during this challenging time.
To learn if you or your loved one qualify for a viatical settlement or life settlements, please give us a call today. 800-973-8258
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