A viatical company purchases life insurance policies from individuals who are likely to die in the near future at a discounted rate and then collects the death benefit from the insurance company when the person passes away. The viatical company profits from the difference between the discounted price they paid for the policy and the full amount of the death benefit they receive.

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A Viatical Company

Question 34

Multiple Choice

A viatical company

A) sells whole life insurance.
B) sells only term insurance.
C) purchases life insurance policies from individuals who are likely to die in the near future.
D) purchases life insurance policies from individuals who no longer need life insurance coverage.

Correct Answer: