viatical settlement


vi·at·i·cal settlement

noun \vī-ˈa-ti-kəl-\

Definition of VIATICAL SETTLEMENT

:  an agreement by which the owner of a life insurance policy that covers a person (as the owner) who has a catastrophic or life-threatening illness receives compensation for less than the expected death benefit of the policy in return for a turning over (as by sale or bequest) of the death benefit or ownership of the policy to the other party (as a company specializing in such transfers) —called also viatical

Origin of VIATICAL SETTLEMENT

probably from viaticum
First Known Use: 1991

viatical set·tle·ment

noun \-ˈset-əl-mənt\   (Medical Dictionary)

Medical Definition of VIATICAL SETTLEMENT

: an agreement by which the owner of a life insurance policy that covers a person (as the owner) who has a catastrophic or life-threatening illness receives compensation for less than the expected death benefit of the policy in return for a turning over (as by sale or bequest) of the death benefit or ownership of the policy to the other party (as a company specializing in such transactions)—called also viatical

viatical settlement

noun    (Concise Encyclopedia)

Arrangement by which a terminally ill patient's life-insurance policy is sold to provide funds while the insured (viator) is living. The buyer (funder), usually an investment company, pays the patient a lump sum of 50–80% of the policy's face value, pays the premiums until the patient dies, and receives the death benefit. Viatical settlements (from Latin viaticum, “provisions for a journey”) appeared in the 1980s, when people with AIDS had high medical bills and policies nominally sufficient to cover them but whose funds would not be available until they died.

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