What is the primary focus of the viatical settlement proceeding?

The primary focus of a viatical settlement proceeding is the transfer of death benefits from policy owners. In this context, a viatical settlement allows individuals with terminal illnesses to sell their life insurance policies for a lump sum payment that is less than the total death benefit but more than the cash surrender value. This process provides the policy owner with immediate financial resources to cover medical expenses or other financial needs during their remaining lifetime.

The essence of a viatical settlement is that it acts as a financial solution for those facing terminal health issues, thereby enabling them to access the funds tied up in their life insurance policies while they are still alive. The purchaser of the policy then becomes the beneficiary and is entitled to receive the death benefit upon the policy owner's passing. This transaction focuses on the value of transferring the death benefit rather than on alternative aspects like traditional insurance claims, cash value considerations, or loans against the policy.