In a viatical settlement, who receives the proceeds from selling the policy?

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Multiple Choice

In a viatical settlement, who receives the proceeds from selling the policy?

In a viatical settlement, the person who sells the policy—the viator—receives the proceeds. The viator is typically the policy owner (often the insured) who wants to exchange the policy for immediate cash. The viatical settlement purchaser or provider pays the viator a lump sum and then becomes the new owner and beneficiary of the policy, responsible for ongoing premiums and eventually receiving the death benefit. The viatical settlement broker facilitates the transaction and earns a commission, but the immediate cash from the sale goes to the viator.

In a viatical settlement, the person who sells the policy—the viator—receives the proceeds. The viator is typically the policy owner (often the insured) who wants to exchange the policy for immediate cash. The viatical settlement purchaser or provider pays the viator a lump sum and then becomes the new owner and beneficiary of the policy, responsible for ongoing premiums and eventually receiving the death benefit. The viatical settlement broker facilitates the transaction and earns a commission, but the immediate cash from the sale goes to the viator.

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