Definition

Noun: 1. The act of purchasing life insurance policies from terminally ill policyholders: This is a financial transaction where a company or investor (the viator) buys a life insurance policy from a person who is terminally ill (the insured). The insured receives a lump-sum cash payment, which is a percentage of the policy's death benefit, while the viator becomes the new policy beneficiary and assumes responsibility for future premium payments. The viator profits when the insured passes away and the full death benefit is paid out.

Usage Examples

• Noun:
  • The company specializes in the viatication of policies for patients with advanced illnesses.
  • Viatication provides a financial option for those facing high medical costs.
  • The process of viatication is regulated to protect vulnerable sellers.

Advanced Usage

• "To viaticate a policy": This is the verb form, meaning to sell one's life insurance policy through a viatication settlement.
  • Faced with mounting bills, he decided to viaticate his policy.

Variants and Related Words

• Viatical Settlement (n): This is the more common term for the transaction itself or the contract resulting from viatication. It is often used interchangeably with "viatication" in modern financial contexts.
  • He entered into a viatical settlement to access funds for his care.
• Viator (n): The person (the terminally ill insured) who sells their life insurance policy.
  • The viator received a cash payment for the policy.
• Viatical (adj): Pertaining to a journey or travel funds (original Latin meaning), or relating to viatical settlements.
  • The viatical industry is subject to specific laws.

Synonyms

• Life settlement (specifically for seniors, not necessarily terminally ill): A broader category that includes viatication.
• Accelerated death benefit (a provision from the insurer, not a sale to a third party): A related concept where the insurance company advances a portion of the death benefit.

Notes on Meaning

• Primary Meaning: In modern financial and legal English, "viatication" almost exclusively refers to the niche practice of buying life insurance policies from the terminally ill. Its original, broader meaning related to travel provisions is now archaic.
• Context is Key: This word is highly specialized and is primarily used within the insurance, financial services, and legal fields. It is not a common word in everyday conversation.

Noun

1. purchasing insurance policies for cash from terminally ill policy holders