Viatical Life Settlement Provider

Like a life settlement company, a viatical life settlement provider acquires the life insurance policy from the holder. What's different between a traditional life settlement company and a viatical life settlement provider is that the viatical settlement provider buys the policy from a viator-or original policy owner-of an individual who has a catastrophic or life-threatening illness or condition.

A viatical life settlement broker, who works on behalf of the viator, negotiates the sale-attempting to get the most cash for the sale that is less than the net death benefit that the policy will pay upon the insured's death. A longer life expectancy of the terminally ill subject means that the viatical life settlement broker will negotiate a cheaper price for the policy. The viatical life settlement provider then cashes in the policy for the original face value when the insured individual dies.

Most experts agree that this type of transaction carries a high rate of risk because it is unknown when the insured will succumb to his or her terminal illness.

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