What is a viatical settlement, and is there a difference between it and a Transferable Insurance Policy?
A. A viatical is typically a policy owned and being sold for investment by a terminally ill person with a life expectancy of 24 months or less. Typically this is a policy with a small face amount, usually under $100,000, being owned by a person under the age of 50. Viatical settlements are not common for investors with Berkshire Moody. A Transferable Insurance Policy (Life Settlement Policy) is typically a special purpose policy (either business or estate planning policy) being sold for investment that has served its stated purpose and is no longer of use. Typically these are large face amount policies, usually over $500,000, and being owned by a person over the ago of 70.
