Definition

Adjective: - Pertaining to the purchase of life insurance policies from terminally ill policyholders: This term describes transactions, businesses, or agreements where a person's life insurance policy is sold for a lump-sum cash payment, typically at a discount, because the seller (the viator) has a serious or terminal illness. The buyer (the viatical settlement provider) becomes the new policy beneficiary and assumes responsibility for future premium payments, collecting the full death benefit when the original insured person dies.

Usage Examples

• Adjective:
  • The investor specialized in viatical transactions, providing immediate funds to the critically ill.
  • State regulations govern the viatical settlement industry to protect consumers.
  • They entered into a viatical agreement to gain liquidity from an unneeded life insurance policy.

Advanced Usage

• "Viatical settlement": This is the core compound term. It refers to the specific financial transaction or contract itself.
  • The financial advisor explained the pros and cons of a viatical settlement to her client.
• "Viatical provider" or "Viatical company": Refers to a firm that purchases life insurance policies in viatical settlements.
  • He received offers from several viatical providers after his diagnosis.

Variants and Related Words

• Viaticum (n): While etymologically related (from Latin for "provision for a journey"), this word has a distinct, primarily religious meaning referring to the Eucharist given to a person nearing death.
• Viator (n): The terminally or chronically ill person who sells their life insurance policy in a viatical settlement.
• Viatical Settlement (n): The specific financial transaction or contract. This is the most common compound term.
• Life Settlement (n): A broader, related term for selling a life insurance policy, which may involve seniors who are not necessarily terminally ill.

Synonyms

• Life settlement-related (in a broader context, though not identical).
• Death-benefit purchasing (descriptive phrase).

Notes on Meaning

This is a specialized financial and legal term. Its use is almost exclusively confined to discussions about this specific niche of the insurance and investment industries. It carries significant ethical and emotional weight due to its direct connection to terminal illness and mortality.

Adjective

1. pertaining to the purchase of insurance policies from terminally ill policy holders
   • viatical business
   • viatical companies
   • National Viatical Association