They are also required to disclose alternatives that the insured's life insurance company may offer. Contact two or three viatical settlement companies to make sure offers are competitive and to be aware of prevailing discount rates. Check to see if the company is a broker or a funding company. Do not assume that a broker will act in your best interest. They may steer you toward a company with which they have a relationship, but not necessarily the one that would give you the best deal.
Brokers usually receive a percentage of the death benefit from the viatical settlement company.
Don't give in to high pressure. If you do enter into a settlement agreement, remember that California law allows you 15 days from the date you executed the settlement to rescind it for any reason. Check with the California Department of Insurance to make sure the viatical settlement company or broker is licensed and to find out the status of the license. Get a reliability report on the company from the Better Business Bureau. Verify that the investor or company has the money for your payout readily available.