Viatical settlements: ethical perspectives

Viatical settlements are new within the last decade. A settlement contract is a written agreement between a viator (terminally ill person) and an independent viatical settlement company. The company purchases the viator's life insurance policy before the person expires, paying a designated percentage of the policy's worth in exchange for ownership of the policy and beneficiary rights. The viatical settlement company assumes the responsibility for paying the premiums on the policy until the death of the viator. Settlement or proceeds to the viator typically average between 50 and 80 percent of the face value of the policy. This article examines the ethical ramifications of viatical settlements.