In a viatical settlement agreement, who receives the life insurance proceeds after Brian's death?

In a viatical settlement agreement, a person with a terminal illness sells their life insurance policy to a third party in exchange for immediate cash, usually at a discounted rate compared to the face value of the policy. When the person passes away, the life insurance proceeds are paid out to the buyer of the policy, which, in this context, is typically the entity that purchased the policy through the viatical settlement—referred to here as Best Insurers.

Because Brian has entered into a viatical settlement agreement, he has effectively transferred the rights to his life insurance benefits to Best Insurers in exchange for upfront cash. Therefore, upon Brian's death, the proceeds from the life insurance policy would go directly to Best Insurers as they are now the rightful owner of the policy, rather than being distributed to his estate or beneficiaries under his will.

This setup illustrates the fundamental nature of viatical settlements, where the original policyholder receives financial assistance while alive, and the purchaser assumes the risk and reward associated with the life insurance policy.