After the settlement, the purchaser continues to make premium payments and receives the death benefit upon the seller’s passing. A viatical settlement broker is usually required to be licensed. A viatical settlement is similar to a life settlement, though a viatical isn’t taxed and has notable differences when it comes to eligibility. So, a good broker: has long-standing relationships with buyers of life insurance policies; orders and organizes all the relevant paperwork needed to bring a policy to market. In fact, some people use the term viatical life settlement broker to describe an individual that facilitates the sale of an existing life insurance policy

Viatical settlement brokers and life settlement brokers are terms that are often used interchangeably. A viatical settlement broker is an individual who negotiates on behalf of the insured to secure an offer. Simply put, a viatical settlement is the sale of a life insurance policy to a third party for cash. Another key difference is that a viatical settlement broker normally charges the insured an applicable fee to help negotiate an offer, while working directly with a viatical settlement company avoids this cost.

What Is a Viatical Settlement? Brokers should be transparent about their fees and policies. To qualify, the policyholder must agree to share certain medical and personal information with prospective buyers of their policy. Under a viatical settlement, a life insurance policyholder works with a settlement company (also called a settlement provider) or with a broker to sell their policy for a one-time cash payment. Viatical Settlement Brokers. VIATICAL SETTLEMENT BROKERS. Viatical settlements actually aren’t uncommon, but they’re not often discussed, so many people haven’t heard of them.

In a viatical settlement, a policyholder connects with a settlement company or broker who provides a cash payment (more than the cash surrender value of a policy and less than the benefit).