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The primary difference between a viatical settlement and a life settlement is :______

User Dkellner
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Final answer:

The primary difference between a viatical settlement and a life settlement is that viatical settlements specifically apply to individuals with a terminal illness, whereas life settlements generally apply to individuals who are age 65 or older and have a specific life expectancy.

Step-by-step explanation:

The primary difference between a viatical settlement and a life settlement is that viatical settlements specifically apply to individuals who have a terminal illness, while life settlements generally apply to individuals who are age 65 or older and have a life expectancy of 2-12 years.

Viatical settlements allow individuals to sell their life insurance policies to a thirdparty for a lump sum payment, providing them with immediate cash to cover medical expenses or other needs during the terminal illness.

On the other hand, life settlements involve selling a life insurance policy to a third party for a lump sum payment, which can be used for any purpose the seller chooses.

User Abnvp
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