3 Reasons to Sell Your Life Insurance Policy and Go On Vacation

Growing old and fighting health issues is no cakewalk. It’s hard on a person — and on his or her bank account, too. It’s bad enough to feel sick and face harsh realities and tough conversations with loved ones. And then, on top of everything else, you may find that your medical bills put you in a serious financial crunch (even if you have great health insurance). You could end up being one of the many Americans struggling to pay their medical expenses. And you could find that your big dreams for your golden years — all the fun you were supposed to have and all of the traveling that you were supposed to do — begins to evaporate.

But it may not have to be this way. Medical bills are tough, but you have tools at your disposal for dealing with them. Among those tools is the viatical settlement.

Under a viatical settlement, you’d sell your life insurance policy in exchange for cash. Financial organizations understand that your life insurance payout is coming (like it or not, we’re all mortal), and are willing to give up cash now in exchange for (more) cash later. Meanwhile, you could use the cash they give you to handle your expenses — and perhaps take that dream vacation after all. Here are a few reasons to do so.

Because you can afford it

Right now, you may not be able to afford a vacation. But if you sell your life insurance policy, you may have enough cash to pay down your medical bills and still have enough left over to start traveling the way that you always meant to.

And what if you don’t have big bills? If you don’t, you may be wondering: can I sell my life insurance policy? Yes, you still may be able to do so. While a viatical settlement has strict rules for qualification, a life settlement is an option for those who don’t meet the criteria for a viatical settlement.

You should do the math carefully, of course, before committing to any huge expenses. But if you find that you can afford it, spend the money. You deserve this.

Because life is for living

You’re paying big bucks and fighting tough battles to stay in this beautiful life for as long as you can. You want to stick around for all sorts of reasons, of course. You adore being around your family and loved ones, and you want to see as much of their future as is possible. 

But life isn’t just something to observe passively. You deserve to seize this moment and every moment that you have left on Earth. Why pay huge medical bills to stick around if you’re not going to make the most of every day, that you’re fighting for? Take the trip.

You can’t take it with you

Money is only as good as what it can buy. And, unless you’re an ancient Egyptian, you’re probably not planning on being buried with your wealth. Now is the time to spend that money.

A viatical settlement will give you the cash value of one of your largest assets, converting more of your wealth into liquid spending money. That money won’t be worth a thing to you when you’re not around to enjoy it, so spend a little.

Of course, you’re probably hoping to leave something behind for your heirs to enjoy. It’s worth noting, though, that a viatical settlement can be a net positive for your heirs as well as for yourself. When you have cash in hand and can pay down your bills, you’ll avoid mounting debt and will keep more of your own money, which you can then pass on to your heirs. The difference could very well outweigh the loss of the life insurance payout.

A vacation may or may not be in the financial cards after a viatical settlement, but you should take one if you can. Speak to your financial adviser about your options and what you can afford.