Given that a viatical agreement or settlement is a somewhat speculative purchase of the whole or fractional interest in an individual life insurance policy. The viatical settlement involves a lump sum of money given to a terminally ill individual in exchange for his life insurance policy. When the insured person dies, the purchaser/investor receives the payout from the life insurance policy.

1. From a financial standpoint what factors determine the value of the viatical settlement:

a. From the investors perspective? b. From the insured perspective?

2. Do you think such settlements are ethical? Why or why not?