Life-threatening Illness and Your Retirement Accounts

By Brenda Watson Newmann
Managing Editor, mPower

Cash in Assets Before You Die

If you are desperate for liquidity, there are ways to cash in your assets before you die. Be sure to seek expert advice before embarking on these options. Never enter into an agreement that you don't understand.

• Reverse mortgages. (A loan against your home that only needs to be repaid when you stop living there. These are normally available only to homeowners over 62 years old.)
• Accelerated death benefits on life insurance, if available to you.
• Viatical settlements. (A terminally ill person sells his or her life insurance policy to someone else at a discount, and that person collects the benefit. Take note that "Since few people have any experience with arranging a viatical settlement, the chances of getting ripped off are high unless you do your homework," according to Growth House, Inc. a San Francisco–based organization promoting end-of-life care.)

For more information about reverse mortgages, try visiting the American Association of Retired Persons' (AARP) "basic facts" or Reverse.org.

For more information about accelerated death benefits, visit Insure.com.

You can find more information about viatical settlements at Growth House or the Better Business Bureau.

The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.

Life-threatening Illness and Your Retirement Accounts

By Brenda Watson Newmann
Managing Editor, mPower

Cash in Assets Before You Die

If you are desperate for liquidity, there are ways to cash in your assets before you die. Be sure to seek expert advice before embarking on these options. Never enter into an agreement that you don't understand.

• Reverse mortgages. (A loan against your home that only needs to be repaid when you stop living there. These are normally available only to homeowners over 62 years old.)
• Accelerated death benefits on life insurance, if available to you.
• Viatical settlements. (A terminally ill person sells his or her life insurance policy to someone else at a discount, and that person collects the benefit. Take note that "Since few people have any experience with arranging a viatical settlement, the chances of getting ripped off are high unless you do your homework," according to Growth House, Inc. a San Francisco–based organization promoting end-of-life care.)

For more information about reverse mortgages, try visiting the American Association of Retired Persons' (AARP) "basic facts" or Reverse.org.

For more information about accelerated death benefits, visit Insure.com.

You can find more information about viatical settlements at Growth House or the Better Business Bureau.

The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.