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A viatical settlement is a contractual agreement to provide a life insurance policyholder immediate cash in exchange for the sale and transfer of life insurance policy ownership rights.
Percentage payouts may be as low as 5% in. some life settlement situations and 80% or more with some viatical settlements. Whatever the percentage, in most cases, the sale of a life insurance policy where the insured. has a reduced life expectancy should be a last resort and should only proceed after an independent.