Who receives the death benefit proceeds from a Viatical Settlement in Rhode Island?

In a Viatical Settlement, the death benefit proceeds are designated to the current beneficiary of the life insurance policy. A Viatical Settlement occurs when a policyholder sells their life insurance policy to a third party for a lump sum, often due to a terminal illness.

The current beneficiary retains their right to receive the death benefit when the insured individual passes away. The buyer of the policy, who is now the new owner, will benefit from the proceeds upon the insured's death, but it is the existing beneficiary listed in the policy who stands to receive the death benefit.

In this context, the insurance company is not receiving the death benefit proceeds; they are paying it out to the beneficiary upon the death of the insured. The insured individual does not receive the proceeds of the death benefit directly, as they have sold their policy. The secondary beneficiary typically comes into play only if the primary beneficiary (the current beneficiary) has passed away or is unable to receive the benefits, making them irrelevant in a direct Viatical Settlement situation. Thus, the current beneficiary is the one who receives the proceeds, reinforcing the correctness of the chosen answer.