A viatical settlement concerns selling an existing life policy in circumstances associated with serious illness under the applicable jurisdiction’s rules.
The distinction that matters
It is distinct from a terminal illness benefit and does not establish an available Australian settlement market.
What to check
- Check legal availability.
- Compare existing policy benefits.
- Review ownership, fees and privacy.
Example to discuss
A seriously ill policyholder first checks the policy’s own terminal illness provisions before considering an overseas sale proposal.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an explanation of terminology found in overseas life-policy material. It does not establish that a similarly named product is currently offered in Australia, or that US guarantees, tax treatment or legal rules apply here.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.