viatical settlement

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Related to Life settlement: viatical

viatical settlement

The purchase—at a discount—of a life insurance policy from a gravely ill patient. The buyer becomes the beneficiary of the policy; the viator receives a lump sum payment before dying.
See also: settlement
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References in periodicals archive ?
Such a client could be a potential prospect for a life settlement in the future.
A life settlement is the sale of a person's life insurance policy to a third-party investor.
A life settlement is an alternative to lapse or surrender -- not to keeping a policy.
The financial crisis that began in 2008 landed a one-two punch on the life settlement industry.
An insurance agent can file the required paperwork with the state, pay a fee and then become a licensed life settlement broker.
A life settlement involves a transaction with someone who's merely 60 years of age or older, whereas viatical settlements always deal with a person who is terminally or chronically ill, and does not have a life expectancy beyond two years," Bayston said.
The disclosure of significant life settlement contract provisions.
In addition, after the Life Partners case, several federal district courts and some state courts (4) declined to follow the reasoning of this case and found that an investment in a fractionalized portion of a life settlement policy was indeed an investment contract and that the efforts of the seller of the investment in securing the life insurance policy and matching investors with particular policies for insureds with certain life expectancies constituted the existence of the efforts of others that satisfied the definition of an investment contract.
Conning Research & Consulting estimated the life settlement market grew to $5.
Policies considered for purchase by life settlement companies must meet certain eligibility requirements, such as:
In a recent survey of accountants, attorneys, estate planners and insurance professionals by Maple Life Financial, a Maryland-based life settlement provider, 45% of respondents had clients over age 65 that had surrendered a life insurance policy for its cash value.
A life settlement transaction creates a two-tiered taxable event.