viatication
noun
Viatication — the purchase of life insurance benefits from the terminally ill
Definition
Purchasing insurance policies for cash from terminally ill policy holders
In depth
Viatication names the practice of purchasing insurance policies for cash from terminally ill policyholders, allowing such individuals to access a portion of their life insurance death benefit while still living, typically to cover medical expenses or other end-of-life needs. The arrangement provides immediate liquidity in exchange for the purchaser eventually receiving the full policy benefit upon the original holder's death.
Origin
The word descends from Latin viaticum, provisions for a journey, originally referring to money or supplies given to a traveler, later adopted by the Christian church to describe the Eucharist given to the dying as spiritual provision for their final journey. That profound original sense, sustenance for life's last passage, lends the modern financial term an unexpected depth, the viatication arrangement understood, etymologically, as provision for the difficult final journey.
Usage examples
"Viatication offered her a way to access desperately needed funds during her final months of treatment."
"The viatication industry grew substantially during periods when medical advances extended life expectancy while treatment costs simultaneously rose."
"Financial advisors carefully explained the tradeoffs involved in viatication before any client proceeded with such an arrangement."
How to use it
Viatication is highly specialized financial and insurance vocabulary, almost exclusively encountered in writing about end-of-life financial planning and the insurance industry, requiring careful, sensitive handling given the deeply personal circumstances involved.
Related concepts
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