from The American Heritage® Dictionary of the English Language, 4th Edition
- adj. Of or relating to traveling, a road, or a way.
- adj. Of or relating to a contractual arrangement in which a business buys life insurance policies from terminally ill patients for a percentage of the face value: a viatical settlement.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- adj. Of or pertaining to a journey; viatic
- adj. Describing the purchase of an insurance policy from a holder who is terminally ill
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- adj. pertaining to the purchase of insurance policies from terminally ill policy holders
A life settlement sometimes called a "viatical settlement" or even "senior settlement" originates when a life insurance policyholder, often an elderly or terminally ill person, sells his or her interest in the policy to a third party, usually at a level that's well below the policy's stated death benefit.
This type of transaction is called a viatical life settlement.
Enter Jesse Bogdonoff, an American employee at the bank who convinced the king to invest the money in a pool of insurance backed investments called viatical contracts, managed by Millennium Asset Management.
If you Google the words "viatical" and "scam" or "viatical" and "fraud," you'll eventually come upon stories about Florida Democrat Bill Nelson, who found himself embroiled in the middle of a viatical settlement scandal (read this, for example).
As the residents aged, as the Hillside Home began to market itself to a sicker population, Gary used the band's appearances to evaluate acquisitions for his brother's viatical funds.
As he looks into the circumstances surrounding the death, he learns about viatical settlements.
It is, if you invest in a life insurance product called a viatical.
I thought they were already doint this with viatical settlements?
Investor funds collected by American Benefits were forwarded to another viatical (death futures) settlement company, Financial Federated Title & Trust, which spent only $6 million to buy interests in actual life insurance policies.
Patients needed money for treatment and viatical settlements provided the perfect vehicle for that.