viatical settlement
/vʌɪˈatɪk(ə)l
/noun
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. See also death futures.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....
- The tax treatment of a viatical settlement is markedly different.
- While the ads for viatical settlement firms focused on impending death, those for drug companies focused on prolonging life - better living through science.
Origin
1990s: viatical from Latin viaticus 'relating to a journey or departing' + -al.