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.
