Spin-Life

Importance: 0.57

Is a company: no

Is a proper noun: no

Synonyms

  • viatical settlement

Definition of Spin-Life

  1. A financial arrangement where an entity convinces an individual to sell their existing life insurance policy or take out and sell a new life insurance policy to a third party. In a spin-life arrangement, a third party agrees to take on the insurance premiums on the promise that they will receive a death benefit; in exchange, the insured person will receive a lump-sum payment from the third party in advance of their own death. Also known as a "viatical settlement", "transferable insurance policy", or a "life settlement."

Related Terms and Acronyms

  • Life Insurance Definition, Very Important,
    • An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
    CanEquity offers life insurance.
  • Surrender Rights Definition,
    • The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
  • Financing Entity Definition,
    • An entity that purchases an insurance policy or settlement contract.
  • Transferable Insurance Policy Definition,
    • A life insurance policy that can be sold to another party through a viatical settlement.
  • Irrevocable Beneficiary Definition,
    • A life insurance or segregated fund beneficiary whose benefit cannot be revoked or modified in any way without his or her consent.
  • Viatical Settlement Definition,
    • A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.
  • Stranger Originated Life Insurance (STOLI) Acronym,
    • A life insurance policy purchased by someone without any insurable interests with the insured person.
    Illegal in many Canadian provinces.
  • Policy Loan Definition,
    • A loan where a life insurance policyholder's death benefit is used as collateral.
  • Loss Payee Definition,
    • An entity that is legally entitled to the benefits of an insurance claim.
  • Revocable Beneficiary Definition,
    • A beneficiary whose benefit can be modified without his or her consent.
  • Viator Definition,
    • A person who agrees to sell his or her life insurance policy to a third party.
  • Accelerated Benefit Option Definition,
    • An option that allows the insured to receive insurance benefits before they would ordinarily be available.
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