Viatical settlements involve the sale of a life insurance policy by a person who is terminally ill.
The ill person receives needed money before death, and the company obtains an investment upon which it will collect when the person dies. The buyer becomes the policy beneficiary, pays the premiums, and collects the face value when the original policyholder dies. Viatical settlement companies often solicit individual investors to buy an interest in these life insurance policies, sometimes offering the investors attractive rates of return. Be sure you are dealing with a reputable viatical settlement company. Some insurance companies will buy back the policy directly or allow accelerated death benefits.