Viator policies appeal to individuals who lack the financial resources to pay for their life insurance policies for the rest of their lives. By selling their policy, viators also receive an influx of cash that could help pay for other expenses in their lives such as medical bills, debts, and end-of-life costs.

Viator policies do not require medical exams or lengthy underwriting processes that other life insurance policies, such as whole life, require. In some cases, individuals who do not qualify for traditional life insurance policies may find viator policies appealing. Viator policies must still be approved by the life insurance company that issued the policy.

Viator policies have some significant tax implications that policyholders should consider before making a decision. The payouts from viator policies are considered to be taxable income. Additionally, while the viator remains alive, the transaction will be classified as an investment income and is typically subject to capital gains taxes.

The length of programs also vary and can range from 3-25 years, depending on what terms the viator and the policy buyer agree to. The buyer pays out a set amount per month to the viator throughout the program’s duration.

Overall, viator policies are an interesting option for individuals who lack the resources to pay for life insurance coverage throughout their lives. While there are some tax consequences associated with viator policies, policyholders can receive an influx of cash that could be used to pay for medical expenses, debts and even end-of-life costs. It is important for potential viators to understand the terms and obligations associated with the viator policy as well as the tax implications it carries. With a strong understanding of their policy, viators can make informed decisions and maximize the benefits of their viator policy.