(from the Latin "Viaticum" (vi-at-i-kum), an allowance for traveling expenses or provisions for a journey.) Initially the term “viatical” applied to the sale of life insurance by a terminally ill person. In some contexts, that narrow use -- i.e., terminal illness -- continues to have meaning (as in the difference between viatical settlement vs. senior settlement) . In other instances, "viatical" can be applied to the broader lifetime settlement process -- for example, the provisions of the NAIC's Viatical Settlement Model Act apply to both viatical and senior settlements. See Viatical Settlement, Senior Settlement
pertaining to the purchase of insurance policies from terminally ill policy holders; "viatical business"; "viatical companies"; "National Viatical Association"
a life-insurance policy that is sold at a discount before the insured person dies
a payment made in exchange for beneficiary rights to a terminally ill person's life insurance policy
The nature of viatical settlements is the assignment (transfer of life insurance benefits)and sale of a death benefit. In the beginning, viatical settlements were used primarily as a financial option for AIDS patients with a clearly terminal illness, who were unable to obtain the resources they need at a critical time, Eventually, victims of other terminal illnesses such as cancer and lukemia recognized the advantages of viating their life insurance policies to pay for current expenses.
A contractual arrangement in which a business buys life insurance policies from terminally ill patients for a percentage of the face value. Termed as a "viatical settlement".