viatical settlement

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viatical settlement

n
(Insurance) the purchase by a charity of a life assurance policy owned by a person with only a short time to live, to enable that person to use the proceeds during his or her lifetime. See also death futures
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.viatical settlement - cash derived from sale of an insurance policy by a terminally ill policy holder
advance death benefit - a percentage of death benefits paid directly to policy holders having a short life expectancy (usually 6 months)
2.viatical settlement - sale of an insurance policy by a terminally ill policy holder
liquidation, settlement - termination of a business operation by using its assets to discharge its liabilities
References in periodicals archive ?
National Association of Insurance Commissioners, 1997, Model Regulation for Viatical Settlements (Kansas City, MO: NAIC).
Viatical settlements provide terminally ill individuals with access to the proceeds of their life insurance policies prior to their death, while at the same time providing an attractive return for the investor.
Although viatical settlements were devised to help terminally ill viators and can be legitimate, the viatical industry has been characterized as "infected with scam artists, `ponzi' schemes, and other fraudulent activities.
From insurance programs and viatical settlements to discounts on travel and merchandise, VFW has something for every member.
Viatical settlements, a financial resource for the terminally or chronically ill, have been around for more than a decade.
3) Viatical settlements are a specialized form of receivable financing under which viatical settlement companies buy from the policyholder, at a discounted rate, the right to receive death benefits under life insurance policies.
The NAIC passed the Viatical Settlements Model Act in 2007 and created protections against STOLI.
The sticky residue from the days of viatical settlements and associations (real or imagined) with stranger-owned life insurance has dogged the life settlement business for years.
The primary subject matter of this case concerns viatical settlements.
Oftentimes confused with viatical settlements, life settlements are the sale of a life insurance policy by a policy owner for less than the face value but more than the cash surrender value of the policy to a third-party investor.
Chief among these are viatical settlements, essentially the parent of life settlements, from which the industry sprung in the late 1990s.
One of the most widely held misconceptions is that life settlements are viatical settlements.