Viatical and Life SettlementViatical and Life Settlements create a secondary market that significantly enhances the planning and management value of life insurance. Policies that no longer accomplish the owner’s financial goals may be sold in the secondary market for ‘fair market value’ to a third party. The purchase price is usually a cash amount less than the death benefit but more than the policy’s cash surrender value. The seller receives a cash payment, the purchaser assumes policy ownership, all contract obligations, and becomes the designated policy beneficiary or co-beneficiary. Alternatively, the seller can request payment in the form of an irrevocable interest in the policy death benefit without any ongoing premium payment obligation. Settlements are ideally-suited for seniors who can no longer afford premium payments. Rather than allowing the policy to lapse without value, the policy can be sold, thus providing a return on premiums paid. E. R. Whitelaw, on behalf of TAC clients, has been active in the settlement market for over 15 years. Additional information concerning the settlement market and sales process is available upon request.