An insurance company that buys a life insurance policy from a terminally ill policyholder at a steep discount.
The insured person often uses the money gained from the sale of his or her life insurance policy for needed medications or treatments not covered under other insurance plans.
During the sale, a viatical settlement provider provides early payouts to the policyholder, assumes his or her premium payments, and then collects the face value of the policy when the insured person dies.
