Viatical Settlement Provider
Definition - What does Viatical Settlement Provider mean?
A viatical settlement provider is a party who exchanges something of value to a person with a life insurance policy in order to obtain the right to the death benefits of the life insurance policy. It is common for a sum of cash to be exchanged to the life insurance policy holder for the rights to the death benefits.
Insuranceopedia explains Viatical Settlement Provider
People typically make viatical settlements with viatical settlement providers when they have an urgent need for money. This could be because they suddenly develop a serous illness or because they are losing their home, or something else that is extreme in nature. Typically, the viatical settlement provider will provide an amount of money that is less than the death benefit of the insurance policy. This way, when the original policyholder dies, the settlement provider will make a profit consisting of the difference between the death benefit and the settlement amount plus any premiums paid.
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