What is a common reason a person enters a Viatical Settlement?

Entering into a viatical settlement primarily revolves around the need for cash liquidity, especially in the context of terminal illness. A viatical settlement allows individuals with life insurance policies to sell their policies to a third party for a lump sum payment, which is typically more financially beneficial than waiting for the policy to mature upon death.

This process is especially relevant when a person is facing significant medical expenses related to their illness, and accessing immediate cash can help cover those costs, as well as support their quality of life during a challenging time. The funds obtained can be used for a variety of needs, including healthcare costs, living expenses, or even debts, making it a practical choice for individuals in such critical situations.