What is a key benefit of a viatical settlement for someone with a terminal illness?

A viatical settlement provides a significant advantage for individuals with a terminal illness by allowing them to access the cash value of their life insurance policy while they are still alive. This process involves selling the policy to a third party for a lump sum payment that is typically higher than the cash surrender value but less than the full death benefit.

This cash payout can be used by the policyholder to cover medical expenses, pay for necessary treatments, make lifestyle improvements, or fulfill other financial obligations. The ability to receive funds immediately can be crucial during challenging times when financial resources may be limited. In contrast, other options would not provide immediate financial relief or cater to the urgent needs of someone facing terminal health challenges.