VIATICATION Meaning and
Definition
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Viatication refers to the act or process of selling a life insurance policy before the death of the insured party, typically to a third-party investor. This arrangement allows individuals who are terminally ill or have a shortened life expectancy to receive a lump sum payment for their policy, which they can then use to cover medical expenses, long-term care, or any other financial needs they may have.
The term "viatication" originates from the Latin word "viaticus," meaning "pertaining to a journey," as it originally referred to provisions or money given to someone embarking on a trip. In the context of life insurance, viatication reflects the notion of providing financial support for individuals as they navigate their end-of-life journey.
The practice of viatication gained popularity in the 1980s during the AIDS epidemic when many terminally ill individuals sought ways to access funds quickly to pay for treatment and care. It has since expanded beyond AIDS patients and is available to any policyholder facing a terminal illness or reduced life expectancy.
Viatication involves selling the life insurance policy to a viatical settlement provider, who assumes ownership and becomes the beneficiary of the policy. The policyholder receives a cash payment, which is typically a percentage of the policy's face value, in exchange for transferring ownership. The viatical settlement provider then assumes responsibility for paying the remaining premiums and collects the death benefit when the insured individual passes away.
Overall, viatication serves as an option for individuals facing a terminal illness or shortened life expectancy to maximize their financial resources to meet their immediate needs, providing them with greater control and flexibility during their remaining time.
Common Misspellings for VIATICATION
- ciatication
- biatication
- giatication
- fiatication
- vuatication
- vjatication
- vkatication
- voatication
- v9atication
- v8atication
- viztication
- vistication
- viwtication
- viqtication
- viarication
- viafication
- viagication
- viayication
- via6ication
Etymology of VIATICATION
The word "viatication" is derived from the noun "viaticum", which comes from the Latin word "viaticus". "Viaticum" refers to provisions or money given to someone for a journey or voyage. In medieval and Roman Catholic theology, it specifically refers to the Eucharist given to a dying person as their final sacrament. "Viaticus" originates from the Latin adjective "via", meaning "way" or "road". Therefore, "viatication" refers to the act of providing provisions, support, or assistance for a journey, especially in the context of providing for someone's needs on their final journey or during their last days.
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