What is the difference between a Viatical and Life Settlement?

Generally speaking, Viatical Settlements differ from Life Settlements slightly.  Viaticals are similar because they also offer a cash settlement in exchange for a life insurance policy.  However, to qualify for a Viatical, the insured must have a terminal illness and a short life expectancy.  Furthermore, Viaticals are regulated seperately by many state insurance departments.

This terminology gets further complicated by the fact that the state insurance departments use varying definitions of each.  Furthermore, in some states, they actually do not define any difference.

Settlement Benefits Association can help you secure a Viatical Settlement if you qualify.  For more information, please contact us.

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Life Settlement licensing requirements vary by state. In some states, life agents and other financial professionals must be licensed to source policies or receive commissions. Settlement Benefits Association is not licensed in all states. Some or all of the proceeds of a Life Settlement may be taxable under federal or state income tax laws. Advice from a professional tax advisor is recommended. This web site is not currently approved in the states of Oklahoma or Texas. This web site does not apply to variable life settlements. Receipt of proceeds may impact eligibility for government benefits and entitlements. Prior to sale, the insured should consider the continued need for coverage, impact to estate plans, availability of insurance, cost of comparable coverage or tax implications.