Difference between life insurance settlements and viaticals
The difference between life insurance settlements and viaticals
The concept of life insurance settlements and viaticals is almost identical. Both involve a policy owner and a funding company transferring ownership of a life insurance policy in exchange for a sum of money. The difference between the two is based upon the expected life span of the insured. If the insured’s life span is short, generally less than two years, the service is deemed a ‘viatical‘. If the insured is older but in reasonable health and has a life expectancy of 2-15 years the service is normally deemed to be a ‘life insurance settlement‘.
