Definitions for "viatical settlement"
Keywords:  ill, terminal, policyholder, life, lump
The purchase of a terminally ill persons life insurance policy for a certain percentage of the policys face value.
(from the Latin "Viaticum" (vi-at-i-kum), historically, an allowance for traveling expenses or provisions for a journey.) n. Historically, the proceeds from the sale of a life insurance policy to a third party by a terminally ill individual. The term today covers the sale by persons who are not terminally ill. Today the term also refers to the sale by a policy owner who may not be the insured individual. This could be a corporation or another family member.
A payoff in advance to terminally-ill life insurance policyholders at a fraction of the policy's face value.
a complex financial arrangement which may require professional guidance
an exciting new development in estate planning