What term describes the insured who enters into a viatical settlement?

The term that describes the insured who enters into a viatical settlement is "viator." In a viatical settlement, the viator is the policyholder who sells their life insurance policy to a third party for a lump sum payment, typically because they have a terminal illness and need immediate cash. The buyer of the policy, often an investor or a viatical settlement company, then becomes the new policyholder and will receive the death benefit when the viator passes away.

Understanding the role of the viator is crucial in the context of viatical settlements, as it highlights the financial strategy available to individuals facing significant health challenges. In this context, the viator makes a decision based on their circumstances, allowing them to convert their life insurance into immediate funds rather than waiting for the policy to pay out at death.