viaticus settlement
Học thuậtThân thiện
The patient receives funds from a viaticus settlement to cover medical expenses.
Definition
- Noun:
- A financial transaction: A "viaticus settlement" is the sale of a life insurance policy by a policyholder who has a terminal illness or a severe chronic condition. The policyholder sells the policy to a third party (a viator) for a lump-sum payment that is less than the death benefit but more than the cash surrender value. The third party becomes the new beneficiary and assumes responsibility for future premium payments, collecting the full death benefit upon the original policyholder's death.
Usage Examples
- Noun:
- The patient considered a viaticus settlement to cover his mounting medical expenses.
- Entering into a viaticus settlement provided her with immediate funds during her illness.
Advanced Usage
"To pursue a viaticus settlement": To actively seek out and arrange such a transaction.
- Facing a critical diagnosis, they decided to pursue a viaticus settlement.
"The proceeds from a viaticus settlement": The lump-sum cash received from the sale.
- The proceeds from the viaticus settlement were used for experimental treatment.
Variants and Related Words
- Viatical Settlement (n): The more common modern term for "viaticus settlement." The words are often used interchangeably, though "viatical" is derived from "viaticum."
- Viator (n): The terminally or chronically ill person who sells their life insurance policy.
- Viatical Company (n): A company that purchases life insurance policies in viaticus settlements.
Synonyms
- Viatical settlement: The direct synonym.
- Life settlement: A broader term that can include the sale of policies by elderly but not necessarily terminally ill individuals.
Related Phrases
- To sell one's life insurance policy: A descriptive phrase for the action involved in a viaticus settlement.
- Accelerated death benefit: A different option where the insurance company pays a portion of the death benefit early, but the policy remains in force. This is not a sale to a third party.
Notes on Meaning
- The term "viaticus" is a Latin-derived word related to "viaticum," which historically refers to provisions or money for a journey. In this context, it metaphorically refers to funds for one's final journey.
- This is a specific financial/legal term and is not used in everyday conversation. It is primarily encountered in financial planning, insurance, and healthcare contexts for the seriously ill.
The patient receives funds from a viaticus settlement to cover medical expenses.
Noun
- sale of an insurance policy by a terminally ill policy holder