What is a viatical settlement?
Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about oureditorial standards
and how we make money.
A viatical settlement is when a third party buys the life insurance policy of someone who is terminally or chronically ill, or nearing the end of her life. It's similar to a life settlement, except that the cash paid may be free from taxes under certain circumstances, for example, if it's used to pay for medical and end-of-life expenses within a certain period of time.
Get essential money news & money moves with the Easy Money newsletter.
Free in your inbox each Friday.