What Should Be Considered In Such An Arrangement?
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UPDATED: Jul 15, 2021
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The insured needs to consider:
1. the implications to the original beneficiary or beneficiaries. Was the insurance intended to protect the beneficiary against financial loss when the insured dies? What will happen to the beneficiary if a viatical settlement is reached, and then there will be no proceeds available when the insured dies?
2. who will pay any debts or medical expenses after death in the absence of life insurance proceeds.
3. what if the insured recovers, or a cure is found for the insured’s condition?
4. what if the insured dies more quickly than expected? Would it have been better to refuse the viatical settlement and allow the beneficiary to get the full value of the policy?