Question

An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize?
a) Estate liquidation
b) Nonpayment of premium
c) Change of beneficiary
d) Viatical settlement

Answer 1

Answer:

Explanation:

Viatical Settlement also known as life settlement occurs when an owner of a life insurance sells his life insurance for cash to take care himself in the case of a terminal illness for a huge sum of money.

The person who buys the life insurance would only enjoy it on the occasion of the death of the initial owner of the insurance.