From Wayne State University's A User Friendly Manual for People With AIDS:

LIFE INSURANCE SELLING (VIATICAL SETTLEMENTS)

If you have a life insurance policy through your work, there are advantages to keeping the policy in place, even though it may mean you have to pay premiums. When you meet with your employer, ask for "full disclosure" of your life insurance benefits. See Life Insurance under Employment and Volunteerism for some of the questions you need to ask. A life insurance policy can be sold or "viaticated" while you are still living. There are a number of companies that will purchase part or all of your life insurance policy. They will pay you anywhere from 55% to 85% of the face value, even if the policy has neither cash value nor dividends and the only benefit it will provide is the death benefit. Some policies allow the company that issued the policy to accelerate the benefits to provide funds to you in some cases. These are called viatical settlements. Each company has their own eligibility requirements, but all of them require you to complete an application and sign release forms so they can obtain your medical records and insurance policy information. Most companies will consider policies with face values between $25,000 and $1,000,000, but some companies will consider higher and lower amounts. It is a good idea to check with two or three companies, but remember that each company will send requests for information to your doctor and insurance company, and this can slow the process considerably.Group policies can also be purchased, but they require additional paperwork, and it usually takes longer to complete the transaction. You will receive the funds in a lump sum, and at the current time, the money received is exempt from federal taxes, but still subject to state and local taxes. However, tax laws change frequently, and it is essential that you check with an attorney or financial consultant. Information and applications from companies that provide viaticalsettlements can be obtained by calling the company directly or by calling the FIA HIV/AIDS Advocacy Services Coordinator at (313) 456-1678 or 1- (877) FIA-AIDS (342-2437).

journal abstracts

Viatical settlements: effects on terminally ill patients

The Viatical Settlement Industry: They Bet on Your Life

Congress takes closer look at overhauling insurance regs

Life settlement training? Basic and homegrown.