Viatical settlements have offered much needed financial assistance for patients for decades. According to Nasdaq, viatical settlements date back to the 1980s when patients were first diagnosed with AIDS. These individuals needed expensive, intensive medical treatments and were faced with discrimination for employment. Viatical settlement payments helped patients then and continue to help patients today. Take a look at the next big thing that viatical settlement funds are offering for cancer patients who need to find financial resources fast.
Big Tax Changes to Life Settlements
The biggest change to come to viatical settlements has been stirring up the life insurance network for a year now. The life insurance settlement market has begun to see the benefits of this new update to the nation’s tax code.
As reported by the CPA Journal, the Tax Cuts and Jobs Act of 2017 led to several major changes for life insurance planning. Please refer to Section 13521(a) of the Act for specifics in the legislation. In terms of viatical settlements based on the tax act, here is what you need to know in a nutshell:
- The individual exemption for estate and gift tax has doubled. This means you no longer need to depend on life insurance to reduce the amount of your estate tax upon your death. In previous years, this would have been the financial decision for high-value estate holders. However, this change makes it easier for you to choose viatical settlements as an option since it does not adversely affect your heirs.
- If you receive a viatical settlement on your life insurance premium, this transaction is treated the same as if you cashed in your life insurance. Thanks to the new act, you are not penalized in any way for taking a viatical settlement payment. What happens if you decide to surrender or cancel your life insurance? This transaction is treated the same as if you sold your policy for viatical settlement funds without additional fines or fees.
As someone who is facing costly cancer treatments, it only makes sense to sell their life insurance in order to help cover those expenses. Now thanks to the Tax Cuts and Jobs Act, you will not be penalized for doing so. Keep in mind, the shorter that the life expectancy is when you settle for viatical payments, the more money you will receive in the payout. Therefore, it is critical to speak with someone to get started as soon as possible to make the smartest financial decision regarding your life settlements.
Paying for Cancer Treatments Using Life Insurance
There were a whopping $91.8 billion in cancer treatments in 2018 alone according to the American Cancer Society. Paying for these treatments out of pocket is typically cost prohibitive for patients. Trying to find financial resources in a time like this is not an option. Instead, choose to sell your life insurance policy as a viatical payment for cancer treatments. This will help cover your portion of deductibles, co-pays, premiums, and co-insurance payments.
Notice that these are all out of pocket costs you will likely have to pay even if you have health insurance. As reported by the American Cancer Society President Chris Hansen, “For cancer patients and their families the costs of cancer care are truly staggering. This report makes clear the importance of insurance coverage, but also offers insight into the extent even insured patients struggle to afford treatment.” One effective and economical way to combat these unexpected costs is to opt for a viatical settlement.
Windsor Life Settlements, LLC is the premier life settlement company in Chicago, Illinois. Our team of life settlement brokers is ready to assist you with getting the most value out of your life insurance policy. At this time of need, you want to get a handle on your options for viatical settlement funds.