Viatical Settlements for End of Life Care

Facing a terminal illness is one of the most challenging experiences a person and their family can endure. Amidst the emotional and physical toll, the financial burdens of end-of-life car such as medical bills, hospice services, and living expense can add tremendous stress. In these difficult times, you may be able to use funds from viatical settlements for end of life care to help ease some of this financial strain, providing much-needed support and peace of mind.

What Are Viatical Settlements?

A viatical settlement is a financial option available to individuals diagnosed with a terminal illness, typically with a life expectancy of 24 months or less. Through a viatical settlement, the policyholder sells their life insurance policy to a third-party viatical settlement buyer. In return, they receive a lump sum cash payment that is greater than the policy’s cash surrender value but less than the full death benefit. The purchaser assumes ownership of the policy, continues premium payments, and collects the death benefit upon the insured’s passing.

This option transforms a life insurance policy—an otherwise illiquid asset—into immediate funds that can be used to cover pressing expenses. For patients and families grappling with the high costs of end-of-life care, viatical settlements offer a much-needed financial lifeline.

How Viatical Settlement Funds Can Be Used for End of Life Care

The financial demands of end-of-life care are varied and significant. Funds from a viatical settlement can be used to help cover a wide range of essential needs, such as:

1. Medical Expenses

Out-of-pocket medical costs can be substantial, even with insurance coverage. Viatical settlement funds can be used to pay for:

  • Treatments and therapies not fully covered by insurance or Medicare.
  • Medications, including pain management and symptom control.
  • Doctor visits, specialist consultations, and hospital stays.

2. Hospice and Palliative Care

Hospice services focus on comfort and quality of life, but they may not cover all costs. A viatical settlement can help fund:

  • In-home hospice care, including nursing support and personal caregivers.
  • Facility-based hospice services.
  • Alternative therapies such as massage, acupuncture, or music therapy to enhance comfort.

3. Home Modifications and Medical Equipment

Ensuring a patient’s home is safe and accessible is crucial for their comfort. Funds can be used to:

  • Install wheelchair ramps, stairlifts, and bathroom modifications.
  • Rent or purchase hospital beds, oxygen equipment, and mobility aids.
  • Set up a comfortable, safe space for at-home care.

4. Basic Living Expenses

While focusing on caregiving, families still face everyday expenses. Viatical settlement funds can help cover:

  • Mortgage or rent payments to keep the family home secure.
  • Utility bills, groceries, and transportation costs.
  • Household support such as cleaning services or meal delivery.

5. Creating Meaningful Experiences

Many individuals use viatical settlement funds to create lasting memories with loved ones. Whether it’s a family vacation, a special reunion, or simply ensuring a peaceful and dignified environment at home, these funds offer flexibility to make the most of precious time.

Emotional and Psychological Benefits

In addition to the financial advantages, accessing funds through a viatical settlement can provide emotional and psychological relief. Knowing that essential expenses are covered allows patients to focus on their well-being and meaningful interactions with family. It also alleviates the stress and guilt often felt by those who worry about leaving financial burdens behind.

Families benefit as well, experiencing reduced financial anxiety and the ability to devote more energy to caregiving and emotional support. By using funds from viatical settlements for end of life care, families can prioritize dignity, comfort, and shared moments without constant financial pressure.

Important Tips for Maximizing Value

Before pursuing a viatical settlement, it’s essential to:

  • Consult with experienced professionals: Viatical.org has been helping people access the hidden value in life insurance for nearly 20 years.
  • Understand settlement offers: Each policy and situation is unique. It is always best to first have your policy appraised for value to get an idea of the potential amount you could receive. 
  • Consider an efficient, online platform: Our platform digitally gathers compliance form signatures and the documents needed to appraise your policy, greatly speeding up the time it takes to get your funds to you.

Patients should also consider the potential impact on heirs and beneficiaries, as the policy’s death benefit will go to the settlement provider instead of loved ones. However, for many families, the immediate access to funds outweighs the long-term benefits of the policy.

Steps to Access a Viatical Settlement

  1. Policy Review: Gather details about the life insurance policy, including face value, type, and premium payments.
  2. Health Assessment: Provide medical records documenting the terminal diagnosis.
  3. Settlement Offer: If value is found and a buyer is interested, a direct offer will be presented to you.
  4. Contract and Change of Ownership: After accepting an offer, complete contracts.  Change of ownership and beneficiary will be processed at the insurance carrier.
  5. Funds Disbursement: Upon confirmation that ownership has changed to the purchaser, receive a lump sum payment that can be used immediately for care needs.

When facing a terminal illness, financial stress should not overshadow the precious moments that remain. You may be able to use funds from viatical settlements for end of life care to help ease some of the financial burden, ensuring comfort, dignity, and quality time with loved ones. By converting a life insurance policy into immediate cash, patients and families can focus on what truly matters – making the most of the time they have together.

For a no-obligation policy appraisal, please give us a call at 800-973-8258