viatical settlement

noun

vi·​at·​i·​cal settlement vī-ˈa-ti-kəl- 

: an agreement by which the owner of a life insurance policy that covers a person (such 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 (such as a company specializing in such transfers)

called also viatical

Word History

Etymology

probably from viaticum

First Known Use

1991, in the meaning defined above

Medical Definition

viatical settlement

noun

viatical set·​tle·​ment

-ˈset-ᵊl-mənt

: 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

Legal Definition

viatical settlement

noun

vi·​at·​i·​cal settlement vī-ˈa-ti-kəl- 

: an agreement by which the owner of a life insurance policy covering a person (as the owner) with a catastrophic or life-threatening illness receives compensation for less than the expected death benefit of the policy in return for an assignment, transfer, sale, devise, or bequest of the death benefit or ownership of the policy to the other party (as a company specializing in such transactions)

Etymology

probably from Latin viaticum provision for a journey