A viatical settlement, or a life settlement, is a financial transaction in which a policy holder of a life insurance policy sells the policy. The seller receives cash and the new beneficiary is responsible for all premium payments until the seller's death. If you are 65 or older and have a high net worth, you may have extra life insurance that you don't need.
You will want to discuss your specific situation with a financial advisor, attorney, accountant, estate planner, insurance advisor, and/or a certified senior advisor (CSA
Situations in which a life insurance settlement should be considered include if the premiums are too expensive, long term medical care is needed, change in employment, if the investment projections have not followed through, bankruptcy, or when a family or charitable gift is given.
Generally viatical settlements involve individuals who have a life expectancy of less than 2 years. This is different than a life settlement which are similar but involve insured individuals with life expectancies of two to fifteen years.