Viatical Settlement Definitions

Viator: A person whose life is insured by a life insurance contract or certificate who wishes to sell or has sold the beneficial interest in his or her life insurance contract for a lump sum.

Viatical Settlement Contract: An agreement between a viator and a viatical settlement provider or company [see below] to transfer the life insurance death benefit of the viator in exchange for money, typically for an amount of money less than the total death benefit of the policy.

Viatical Settlement Provider / Viatical Settlement Company: A person or company that buys death benefits of life insurance policies from individuals for less than the expected death benefits, for the purpose of reselling them or who arranges for such purchases. Viatical settlement providers then sell the death benefits, at marked-up prices, as investments to individuals who expect to receive profits upon the deaths of the viators.

More Life Settlement and Viatical Related Definitions