People living with a potentially terminal illness often face dire financial needs. Often no longer able to work, they must make very difficult choices about food, shelter and medicine. Rather than letting the policy lapse, an option is to sell it, avoiding a loss of years of premium payments and the total face value. Different states have different regulations. The process of selling your life insurance policy is available in almost every state.
Many states require viatical companies to be licensed.
And, several states are in the process of creating licensing requirements. American Viatical Corporation stays abreast of states that require a license. You can check with your State Insurance Commissioner on your states requirements.