Definition of Viatical settlement:
An arrangement whereby a person with a terminal illness sells their life insurance policy to a third party for less than its mature value, in order to benefit from the proceeds while alive.
A settlement wherein the insurer pays a portion of the death benefits payable under a contract that covers a terminally ill person. In exchange for this early payment, the policyholder gives control and rights to the policy contract to another person. Through this process, the insured is paid a fraction of the policy amount before their death.
How to use Viatical settlement in a sentence?
- In a viatical settlement, a person with a terminal disease sells his or her life insurance policy at a discount from its face value in exchange for ready cash.
Meaning of Viatical settlement & Viatical settlement Definition