Who is the Viator in a viatical settlement?

A “viator” is the owner of an individual life insurance policy or a certificate holder under a group policy who enters or seeks to enter into a viatical settlement contract. The “insured” is the person on whose life an insurance policy is written. Usually, the insured is also the viator.

What is a Viator in insurance?

‘Viator’ means the owner of a life insurance policy insuring the life of a person who has a catastrophic or life threatening illness or condition, who enters into an agreement under which the viatical settlement company will pay compensation or anything of value, which compensation or value is less than the expected …

When a Viator sells a life insurance policy?

The owner (viator) of the life insurance policy sells the policy for an immediate cash benefit. The buyer (the viatical settlement provider) becomes the new owner of the life insurance policy, pays future premiums, and collects the death benefit when the insured dies.

Are viatical settlements illegal?

The viatical settlement and life settlement industries are well-established. Your permanent life insurance policy is a financial asset much like any other. You have the legal right to sell it in the marketplace. Not only are viatical settlements legal in the U.S., they are also well-regulated.

Can a life insurance policy be sold for a viatical settlement?

Company policyholders do not qualify for tax-free viatical settlements. Next, the policyholder must sell the life insurance policy to a licensed life settlement provider in their state. If your state does not require providers to be licensed, you can ignore this clause.

Who is the Viator of a life insurance policy?

A viatical settlement is the sale of a life insurance policy to a third party. The owner (viator) of the life insurance policy sells the policy for an immediate cash benefit.

How can I find out if my viatical is on the list?

Contact them to make sure yours are on the list. Contact your state insurance or securities departments to learn about the issues and risks of viatical settlements if: you’re considering selling your life insurance policy; you’re asked to sell your life insurance policy and your health hasn’t changed since you bought the policy;

What happens to the death benefit of a viatical policy?

The policy seller receives a lump sum cash payout that is more than the cash surrender value, but less than the death benefit. The buyer receives the policy’s death benefit when the seller passes from the viatical broker.