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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

viatical settlement  

Definition 1.

The purchase of a terminally ill person's life insurance policy for a certain percentage of the policy's face value.
 

Definition 2.

An arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. The buyer cashes in the full amount of the policy when the original owner dies.
 
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