What is the primary feature of a viatical settlement?

A viatical settlement is a financial transaction in which an individual with a terminal illness sells their life insurance policy to a third party for a lump sum payment. The primary feature of a viatical settlement is that the transaction allows the policyholder to access a portion of their life insurance funds before passing away, providing them with much-needed financial resources to cover medical expenses, long-term care, or other needs. The third party buyer, typically a viatical settlement provider or investor, assumes ownership of the policy and becomes the beneficiary, receiving the death benefit when the policyholder dies.

Overall, the primary feature of a viatical settlement is to offer financial relief and support to terminally ill individuals by giving them access to the value of their life insurance policy while they are still alive.