Which party will get the life insurance proceeds upon Brian's death?
In a viatical settlement agreement, the party buying the life insurance policy, in this case, Best Insurers, will receive the life insurance proceeds upon Brian's death. Agent Monroe facilitated this agreement.
Viatical Settlement Agreement
What is a viatical settlement agreement?
A viatical settlement agreement is a financial arrangement in which a person with a terminal illness sells their life insurance policy to a third party for a lump-sum payment. This allows the policyholder to receive cash to cover medical expenses or other needs while they are still alive.
Parties Involved
Who are the parties involved in a viatical settlement agreement?
In this case, the parties involved are Brian, the policyholder with a terminal illness, Agent Monroe who facilitated the agreement, and Best Insurers, the buyer of the life insurance policy.
Life Insurance Proceeds
How do the life insurance proceeds work in a viatical settlement agreement?
Upon Brian's death, the party that purchased the life insurance policy, which is Best Insurers in this scenario, will receive the death benefit. This means that the lump-sum payment made to Brian for selling his policy will be recouped by Best Insurers as the new owner of the policy.
Do Brian's beneficiaries receive the life insurance proceeds?
No, in a viatical settlement agreement, the beneficiaries under Brian's will do not receive the life insurance proceeds. The purpose of entering into this agreement is for Brian to receive immediate funds while he is still alive, and for Best Insurers to collect the death benefit upon his passing.
What is the role of Agent Monroe in this agreement?
Agent Monroe acted as the intermediary who helped Brian navigate the viatical settlement process and facilitated the agreement between Brian and Best Insurers. However, Agent Monroe does not receive the life insurance proceeds either.
In conclusion, in a viatical settlement agreement, the party purchasing the life insurance policy, such as Best Insurers, will receive the life insurance proceeds upon the policyholder's death. This arrangement provides financial support to the policyholder during a difficult time and allows the buyer to eventually collect the death benefit.