YOU ASK:

What is the definition of Viatical Settlement Companies?

WE ANSWER:

Viatical Settlement Companies are insurance companies that buy existing life insurance policies, commonly at a discount.

Policyowners who are direly in need of funds (because they are ill and are undergoing treatments or medication) may sell their policy at a discount. The viatical settlement company becomes the policyowners - it continues the premium payments, even as it provides an early payout to the original policyholder. And, upon the death of the person insured by the policy, it will receive the death benefits.

Viatical settlements are often the choice, not just of terminally ill but also of those who only have a life expectation of two years or less. The settlements provided are not levied with federal taxes.

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