Viatial Companies take over the premium payments and pay the seller a cash payment once a viatical settlement is complete. The viatical companies will keep the policy and continue to make premium payments moving forward and collect the death benefits for the policy.
My partner has a case she is working on where the husband has numerous life insurance policies inforce, but the wife has little to no coverage. Unfortunately the husband has fallen ill, but wants to make sure his wife has adequate coverage to protect their estate. He has decided to sell one of his policies to one of the viatical companies and use the cash settlement to purchase a new policy on his wife. If all the cash from the husband’s viatical settlement is applied to the new policy being purchased on the wife then the new policy may not require future premium payments.
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