Viatical related terminology

Beneficiary: The person designated to receive the face value of a life insurance policy. In a viatical settlement, one or more investors may receive this designation on an "irrevocable" basis which means no one can change it without permission.

Viaticate: The process in which a person sells a life insurance policy to a third party for less than its face value in exchange for the ownership and beneficiary rights upon the death of the insured.

Viatical Settlement: The sale of a life insurance policy by the owner to a viatical settlement provider in return for immediate payment of a percentage of the policy's face value.

Viatical Settlement Contract: A written agreement between a viatical settlement provider and a viator which establishes terms under which the provider will pay the viator and the cancellation rights of the viator.

Viatical Settlement Provider: A company that enters into multiple viatical settlement contracts with viators. The provider arranges such settlements between viators and one or more investors.

Viatical Settlement Broker: A person or firm offering or attempting to negotiate a viatical settlement between a viator and a viatical settlement provider.

Viator: The owner of a life insurance policy who enters into an agreement to sell the ownership and beneficiary rights of the policy to a third party for less than its face value.

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