How much do viatical companies typically pay for life insurance policies?

Viatical companies typically pay between 50 to 80 percent of the face value of life insurance policies. This range reflects the risks and costs that viatical companies assume when purchasing life insurance policies from individuals, particularly those with terminal illnesses.

When individuals sell their policies to viatical companies, they do so because they need immediate cash for medical expenses or other needs. The viatical company will then take on the responsibility of paying the premiums and ultimately receive the death benefit when the insured passes away. The payment to the policyholder is discounted from the face value due to factors such as the insured's life expectancy, the policy's terms, and the cost of maintaining the policy until the payout occurs. The chosen range offers a balance between providing immediate cash to the seller and accounting for the risk taken on by the buyer, making the response consistent with industry practices.