| Viatical is the sale of a life insurance policy by an | | | | are cancer, cardiovascular disease, and Alzheimer's |
| individual who is terminally ill to a third party, in return | | | | disease. |
| for a percentage of the face amount of the policy. A | | | | The technique can bring valuable benefits, but |
| "viator" is the person selling the policy, and the | | | | unscrupulous operators sometimes take unfair |
| process is known as "viaticating" of the policy. | | | | advantage of sick people. There are always ethical |
| People take part in viatical settlements because they | | | | implications when health organizations or doctors |
| cannot afford their life insurance premiums, or they | | | | become involved. One who has purchased the policy |
| need some extra money to cover their expenses. If | | | | is actually betting on how long the seller will live, since |
| you are facing either of the situations mentioned | | | | he has to continue to pay the premiums until the |
| above, a viatical settlement may be right for you. | | | | seller of the policy dies. So some people have aptly |
| Viatical settlements began taking the form of an | | | | named these buys "death futures." |
| industry only in the mid-1980s, although selling a life | | | | As a result of extensive marketing campaigns and |
| insurance policy to a third party is not a very recent | | | | aggressive recruiting practices, advisors and |
| development. The onset of the AIDS epidemic | | | | consumers are becoming increasingly aware of this |
| created a niche for this market. Although the scheme | | | | product, both as a planning option and as a potential |
| developed to help people with AIDS, it has since | | | | scam. But some surveys show that the popularity of |
| been extended to any terminally ill person needing | | | | this scheme has begun to wane, as the treatments |
| money. Some of the other diseases that are | | | | for AIDS have begun to show a certain degree of |
| considered potential sources of viatical transactions | | | | success, thus increasing life expectancy. |