Viator

Definition

• 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."

Synonyms
terminally ill policy holder, sale of provisions, cash in lieu of benefits, seller of benefits

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,
  • A life insurance policy purchased by someone without any insurable interests with the insured person.
  ➥ Illegal in many Canadian provinces.
• Viatical Settlement — Definition,
  • A contract where an individual agrees to sell his or her life insurance policy to a third party before their death.