The main reason is the AIDS epidemic. People with AIDS have a very predictable life expectancy. Based on the medical condition of the viator, a probable holding period can be established and a rate of return predicted within reasonable parameters. The total return is guaranteed by the financial strength of the insurance company that issued the policy and is responsible for payment of the death benefits. Another reason is that so many investors and financial planners are looking for investment opportunities that are not tied to the performance of the stock market.
Terminal illness drains resources.
The proceeds from the Viatical Settlement may pay for medical expenses that health insurance will not cover. Many viators have run out of health benefits and need money to pay for standard medical treatment of symptoms. Others are unable to meet their daily living expenses. Viatical Settlements are extremely secure. They are, by definition, insurance benefits.