VIATICAL Meaning and
Definition
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The term "viatical" refers to a financial transaction or agreement in which a terminally ill person sells their life insurance policy to a third party, usually at a discount, in exchange for a lump sum cash payment. This arrangement allows the policyholder to access a portion of the death benefit before they pass away, providing them with financial flexibility and the ability to cover medical expenses, debts, or any other necessary costs during their final stages of life.
Viatical settlements are typically initiated when the policyholder has a life expectancy of two years or less. Once the policy is sold, the third-party purchaser becomes the new beneficiary and assumes the responsibility of paying future premiums. Upon the death of the insured, the purchaser receives the full death benefit from the insurance company.
Viatical settlements serve as a financial solution for individuals facing terminal illnesses who are in need of immediate funds. Due to the nature of these settlements, it is crucial for policyholders to carefully evaluate and consider the terms and conditions of the transaction before proceeding. Additionally, it is recommended to consult with financial advisors or viatical settlement professionals to ensure the best course of action is taken.
Overall, viatical settlements provide an opportunity for individuals facing terminal illnesses to alleviate financial burdens and improve their quality of life during their remaining time by converting the value of their life insurance policy into a liquid asset.
Common Misspellings for VIATICAL
- ciatical
- biatical
- giatical
- fiatical
- vuatical
- vjatical
- vkatical
- voatical
- v9atical
- v8atical
- viztical
- vistical
- viwtical
- viqtical
- viarical
- viafical
- viagical
- viayical
- via6ical
Etymology of VIATICAL
The word "viatical" derives from the Latin term "viaticus", which means "belonging to a journey". The Latin term comes from "via", meaning "way" or "road". In the original sense, "viaticus" referred to provisions or funds provided for a journey, especially a long one. Over time, the term's meaning evolved to specifically relate to provisions or funds provided for someone's journey in their last days or for funeral expenses. In the modern context, "viatical" is often used to describe financial arrangements related to the sale or advance of life insurance policies to individuals with terminal illnesses.
Similar spelling words for VIATICAL
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