What is it called when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary?
A) Participating policy
B) Living benefit rider
C) Viatical settlement
D) Guaranteed purchase option
E) None of the above

Question

Quizplus · Accepted Answer

This is called a viatical settlement, where the insured sells an interest in their life insurance policy to an investor who becomes the beneficiary. This is typically done by individuals who are terminally ill or have a chronic illness and require funds to pay for medical expenses or other costs. The investor receives a portion of the death benefit while the insured is still alive, and the insured receives funds to help pay for expenses.

What Is It Called When an Insured Sells an Interest