- A terminally ill individual who agrees to sell their life insurance policy to a third party at a discount in exchange for a cash settlement, a transaction called a "viatical settlement."
sale of provisions, cash in lieu of benefits, seller of benefits, terminally ill policy holder
Related Terms and Acronyms
- Accelerated Benefit Option — Definition,
- An option that allows the insured to receive insurance benefits before they would ordinarily be available.
- Financing Entity — Definition,
- An entity that purchases an insurance policy or settlement contract.
- Loss Payee — Definition,
- An entity that is legally entitled to the benefits of an insurance claim.
- Spin-Life — Definition,
- A financial industry that specializes in buying life insurance policies from individuals or convincing individuals to take out new life insurance policies with an investor as a beneficiary.
- Stranger Originated Life Insurance (STOLI) — Acronym,
➥ Illegal in many Canadian provinces.
- A life insurance policy purchased by someone without any insurable interests with the insured person.
- Viatical Settlement — Definition,
- A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.