Barney is the owner and insured of a $200,000 life insurance policy. Upon learning that he has a terminal illness, he sells the policy to a third party for $140,000, and the third party becomes the owner and beneficiary of the policy. Barney entered into what type of arrangement? a. life endowment b. accelerated death benefit arrangement c. qualified policy surrender d. viatical settlement

Question

Mathematics

Brock Doyle

11 November, 18:51

Barney is the owner and insured of a $200,000 life insurance policy. Upon learning that he has a terminal illness, he sells the policy to a third party for $140,000, and the third party becomes the owner and beneficiary of the policy. Barney entered into what type of arrangement? a. life endowment b. accelerated death benefit arrangement c. qualified policy surrender d. viatical settlement

+1

Answers (1)

Know the Answer?

Harold Gomez · Answer 1

Viatical settlement

Step-by-step explanation:

Here Barney sold his life insurance to 3rd party for less net death benefit value.

He entered into the arrangement called - viatical settlement

A viatical settlement is the sale of a life insurance policy to a third party. The owner of the life insurance policy sells the policy for cash benefit, thus making the buyer the new owner of the policy who will get death benefits.