[from the Latin "Viaticum," historically,
an allowance for traveling expenses or provisions for a journey]
n. The proceeds from the sale of a life insurance policy to a
third party by a terminally ill individual. A viatical settlement
should not to be confused with an accelerated benefit from the
policyholder's life insurance.
[Historically, to furnish with the necessary provisions
for a journey] v. To sell a life insurance policy to a third party
when the individual is terminally ill.
A terminally ill person who sells his/her life
insurance policy to a third party and receives a lump sum cash
Viatical or Senior Life Settlement Brokerage
A company which represents a seller in the settlement
process. Typically they advertise their services, assemble the
necessary information into a package, submit that package to more
than one funding source, and negotiate with those sources on the
seller's behalf. The brokers fiduciary duty is entirely to the
Viatical or Senior Life
Settlement Funding Company n.
A company that agrees to provide the funds necessary
to purchase a seller's policy. The funding company's fiduciary
duty is solely to its provider(s) of capital.
Settlement Contract n.
A purchase agreement entered into by a viatical
or senior life settlement funding company and a seller. The agreement
establishes the terms under which the settlement funding company
will produce the funds in return for the assignment or transfer
of ownership of the insurance policy.