Viatical Settlement
A viatical settlement is the absolute sale of a life insurance policy by the owner of the policy before the maturation of the said policy. Sales of viatical settlements are at a price discount from the face amount of the policy. However, viatical settlements are normally in excess of the insurance premiums paid or current surrender value of cash. This offers the seller an instant cash settlement. Viatical settlements generally involve insured customers with a life expectancy of two years or less. In nations without state-subsidized healthcare, along with high healthcare costs-the United States-this is considered a very practical way to pay out severely high health insurance premiums faced by extremely ill individuals.
(Source:lifecoverpro)
