Viatical settlements and life settlements are very similar. A viatical settlement a settlement where the insured on the policy is either terminally or chronically ill and a life settlement is when you sell your policy for other personal reasons. Typically, for a life settlement, you must be 70 years or older to qualify and the average age of people who sell policies is 75. Younger policy owners can also qualify, but they often suffer from serious health issues. Viatical settlements in many states require the policy owner to be terminally ill with a life expectancy of fewer than two years or chronically ill and unable to perform at least two “activities of daily living” such as bathing, eating, dressing, or going to the bathroom on their own.