Viator
Contents
Exploring Viators: Understanding Life Insurance Policy Sales
Delving into Viators
Viators, often individuals facing terminal illnesses, opt to sell their life insurance policies to receive a portion of the death benefits while alive. Motivated by the need to finance costly treatments or experimental therapies, viators seek alternatives to cover medical expenses.
Understanding Viatical Settlements
Viators engage with viatical settlement providers (VSPs) who purchase their policies at a discount, assuming responsibility for premium payments. Upon the viator's passing, the VSP receives the full death benefit. However, the process carries risks, as viators may experience remission or unforeseen longevity, impacting the VSP's profitability.
Real-Life Scenario: Ted's Journey
Ted, facing a dire cancer prognosis, explores experimental treatments unsupported by his insurance provider. Consequently, he opts to sell his policy, becoming a viator. Negotiating with a VSP, Ted settles for a lump sum, altering his family's future financial security.