The annual premium is substantial and the firm needs to obtain a new policy for George's successor but cannot justify the expense of paying such a large premium for a retired executive. The firm uses part of those proceeds to sweeten George's retirement package. Typically, a viatical settlement is done for reasons of health while a life settlement is done for financial or estate planning reasons. If you were to visit most any settlement company, you would find a file or scrapbook of letters, snap shots and post cards from viators who have written to say how grateful they are to have been able to use this valuable asset before their death. There are no restrictions on how the proceeds of a viatical settlement may be used.
Viatical settlements are about living.
Inc. Last updated June 5, 2001.