Over the last couple of hundred years, the life insurance policies have protected many people and given them the security of knowing that their loved ones could be protected in the event of their untimely death. Another purpose that people had for a life insurance policy was the ability to borrow from it when needed. Now there is a new benefit available to the customer in the event that he or she is given a medical prognosis that is terminal.
This arrangement has become known as selling life insurance policy to free up the value that has grown within it. The Viatical Settlement Provider has been used with more regularity since becoming available several years ago. It is a benefit in which the insured person can access an amount of money from the policy to be used in any manner the insured person chooses. The are many alternative methods of treatment that the health insurance that the policy owner possesses does not cover. This treatment can now become available to the insured because the monies may become available to try them. There have been some successes with these alternative treatments and why should they not be available if they want to make a different method of treatment?
Another thing to keep in mind is that the death benefit that may have been appropriate at the time they originally took out the policy may be “over insuring” them now. So many policies after purchase are placed in a draw to gather dust that the circumstances may have changed completely by now. What if the insured says I want to sell my life insurance? What if the insured wants to take a trip to a spot that they thought about visiting but never got around to. What if there is a reason to create a “legacy” while living, i.e. that grandchild who will need to take on debt to finish their education? There is no end to the benefits that can be received when a payoff can be used during one’s lifetime (however long or short) rather than after death. Who better than the insured to make that decision! The insured person who considers selling their policy may want to see the benefit it performs in their lifetime and who should deny them that privilege?