Legal Dictionary of Pakistan

aiatical settlement

[fr. Latin uiaticus "relating to a road or journey"] A transaction in which a terminally or chronically ill person sells the benefits of a lifeinsurance policy to a third party in return for a lump-sum cash payment equal to a percentage of the policy's face value. ( Viatical settlements are common with AIDS patients, many of whom sell their policies at a 20% to 40% discount, depending on life expectancy. When the insured (called the "viator") dies, the investor receives the insurance benefit.