A viatical settlement is a transaction where a terminally ill individual who owns a life insurance policy sells it to a third party. The third party agrees to pay the insured individual an amount that is less than the value of the insurance policy, and to pay the premiums of the insurance policy as they are due. Viatical settlements are illegal in most provinces in Canada. This project discusses viatical settlements in Canada and traces their historical development in the United States. It considers legal reform and the relevant policy considerations relating to the desirability of having legal barriers to viatical settlements.
Keywords: viatical settlement, life settlement, insurance, insurance policy, seniors, older adults, consumer, consumer protection, health, AIDS and catastrophic disease, life expectancy, wills, estates & life planning
