If you or a loved one have recently been diagnosed with a terminal illness, you might be hearing a lot of unfamiliar or scary terms. There’s talk of life expectancy, medical options, life insurance, and viatical settlements. With so much to handle and think about, it can be overwhelming to learn about viatical settlements and the details of a life insurance policy. If you’d like to know about the details of a viatical settlement and what it’s for, here’s everything you need to know.

A viatical settlement is a great way to cash in your life insurance policy.

When you’re diagnosed with a terminal illness, you suddenly find yourself scrambling to tie up loose ends. You might be struggling with the diagnosis and feeling overwhelmed or numb. For many, dealing with end of life tasks and maintaining a regular schedule helps them cope with a difficult diagnosis. If you’re a single parent with young children, you’ll need to make sure your will clearly outlines what will happen to them. You might want to consult a financial planner to discuss your current resources and options.

A viatical settlement is a great way to cash in your life insurance policy so you can handle the end of life expenses. When you sign a viatical settlement contract, you sell your current life insurance to a viatical settlement provider. You then receive a lump sum cash payout, which is less than the death benefit amount but more than the cash surrender value.

You qualify for a viatical settlement if you have a chronic illness and life insurance. The company will calculate your cash payment by looking at your medical condition and the details of your insurance policy. It’s quick and easy to process the payment, which means you can have cash in your hand in a matter of days. This is a much better option than taking out a loan and accruing more debt. The payout is also tax-free, unlike the cash surrender value. If you’re concerned about your financial status as you’re nearing the end of your life, consider a viatical settlement.

You can use the payout to cover a variety of expenses.

Once you sell your life insurance policy and receive a payout, you can use that money to pay for anything. Some people who’ve been diagnosed with a terminal illness just want to take one last family vacation. Your cash payout can fund an amazing last trip with the people you love and allow you to visit somewhere you’ve never been to. For others, the cash settlement can help tie up loose ends. If you’ve been paying off your automotive and diesel certifications, the payout can help you finish paying for your degree program.

You may want to make the last few payments on your mortgage so your adult children can keep your home. For others, the payment is crucial for continuing to receive medical care. You might need to pay for expensive medications or treatments. You may need to fund home care or hospice and a large payout can help you pay for these expenses. Maybe you just want to provide your family members with funds so they can take time off work to be with you.

Whatever you’d like to use the money for, you can. Once you receive your cash payout, there are no restrictions on how you spend it. If you have debt or expenses or the desire to travel, you can handle it all with your payment. A viatical settlement can put your worries to rest when it comes to unexpected or overwhelming costs, so you can enjoy the time you have left.

If you or a loved one have been diagnosed with a serious condition, consider a viatical settlement. You can use the money however you see it and it will be one less thing to worry about. Spend more time with the people you love, not with your financial planner.