What is a viatical settlement?

By

PolicyGenius Admin

PolicyGenius Admin

Blog author PolicyGenius Admin

Published April 22, 2015

Policygenius content follows strict guidelines for editorial accuracy and integrity. Learn about our

editorial 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.

PolicyGenius Admin

Blog author PolicyGenius Admin