Main Entry: viatical set·tle·ment

Pronunciation: \-ˈset-^əl-mənt\

Function: noun

: 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