Both life settlements and viatical settlements allow you to sell a life insurance policy to a third party for cash. The main difference is your health and life expectancy. Viatical settlements are generally for people with terminal or chronic illnesses, while life settlements typically involve older policyholders who no longer want or need their coverage. Because someone eligible for a viatical generally has a shorter life expectancy, a viatical typically pays a larger percentage of the policy’s death benefit.
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