viatical settlement
- A transaction where the holder of a life insurance policy, covering a person with a severe or terminal illness, receives payment below the expected death benefit of the policy, and transfers the death benefit or ownership of the policy to another party, often a company adept at these transactions
- The terminally ill man decided to go with a viatical settlement to ensure his family has immediate financial support.
- In order to pay for costly medical bills, the patient chose a viatical settlement, selling her life insurance policy for less than its death benefit value.
- The insurance company offered a viatical settlement as an option for those with life-threatening illnesses to secure urgent funds.
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