What is a viatical settlement?
Can you sell a life insurance policy to a third party? Find out what a viatical settlement involves in the MoneySense Glossary.
Why are mortgages so expensive in Canada?
Created By
Ratehub.ca
A viatical settlement allows a policyholder to sell their life insurance to a third party for a percentage of the net benefit because the policyholder is under financial stress and needs immediate access to cash. The third party buys the policy at a discounted price that is still higher than the premiums paid or the current cash surrender value. The third party takes over payments of the monthly premiums and will receive the insurance payout when the policyholder dies.
Example: “Viatical settlements are not legal in most Canadian provinces.”
Read more on viatical settlements:
- What is a viatical settlement?
What is a viatical settlement—and other questions about selling and buying a life insurance policy in Canada answered.
Get personalized quotes from Canada’s top life insurance providers.All for free with ratehub.ca. Let’s get started.*This will open a new tab. Just close the tab to return to MoneySense.
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Inflation is on target in Canada, so why is food (and other stuff) still so expensive?
Why Canadians are still feeling the squeeze of high food costs, and what to do about it.
Making sense of the markets this week: November 17, 2024
The Trump effect and Trumponomics, Shopify’s huge earnings beat, it’s sunny days for Suncor shareholders and more.
The best travel insurance credit cards in Canada for 2024
Each of these cards offers a suite of features to help you worry less on your next trip, from...
The best rewards credit cards in Canada for 2024
From redeemable points to cold hard cash, these credit cards offer big rewards on your everyday spending.
The best balance transfer credit cards in Canada for 2024
These cards offer super-low introductory rates for balance transfers.
The best gas credit cards in Canada for 2024
Whether you’re looking for points or cash back, these cards will help you earn benefits from your fuel expenses.
MoneySense at the MoneyShow: Capital gains and ETF sessions
Here’s how to get your free ticket to attend two MoneyShow virtual expos.
Deal or no deal: What to know before shopping Black Friday and Cyber Monday sales
If you’re one of the many Canadians looking for Black Friday and Cyber Monday discounts, here’s how to know...