Viatical Settlement Provider
What Does Viatical Settlement Provider Mean?
A viatical settlement provider is a party that offers something of value to a person with a life insurance policy in exchange for the rights to the death benefits of that policy. Typically, the life insurance policyholder receives a lump sum of cash in exchange for transferring those rights to the provider.
Insuranceopedia Explains Viatical Settlement Provider
People typically enter into viatical settlements with viatical settlement providers when they have an urgent need for money. This could be due to a serious illness, financial distress such as losing their home, or other extreme circumstances. Generally, the viatical settlement provider offers a sum of money that is less than the death benefit of the life insurance policy. In return, when the original policyholder passes away, the provider profits from the difference between the death benefit and the settlement amount, plus any premiums paid on the policy.
