What does a viatical settlement allow an individual with a terminal illness to do?

A viatical settlement provides individuals with a terminal illness the opportunity to sell their existing life insurance policy for a percentage of its face value. This financial arrangement allows policyholders to access funds that can be used for medical expenses, living costs, or any other purpose during a difficult period.

Viatical settlements are specifically designed for those who are facing terminal health conditions, enabling them to utilize the benefits of their life insurance policy before passing away. The amount received from the sale is typically less than the policy's full face value, but it provides immediate liquidity to the seller.

This approach helps those with limited time and a pressing need for financial resources, illustrating one of the unique aspects of life insurance that can provide support beyond just a death benefit. Other options do not pertain to the viatical settlement process and do not provide the same opportunity for individuals in critical health situations to gain immediate financial relief.