Viatical Settlement
An arrangement in which someone with a terminal disease sells his or her life insurance policy at a discount from its face value for ready cash. The buyer cashes in the full amount of the policy when the original owner dies. Also referred to as a Life Settlement.

Investopedia Says:
This is extremely risky. The rate of return is unknown because it's impossible to know when someone will die.

If you invest in a viatical settlement, you are basically speculating on death. Therefore, the longer the life expectancy, the cheaper the policy. But because of the time value of money, the longer the person lives, the lower your return. This is undoubtedly one of the more morbid investments you can buy.

Related Terms:
Face Value
Life Insurance
Speculator
Time Value of Money
Viager

• Defeased Securities
• Defensive Acquisition
• Defensive Buy
• Defensive Company
• Defensive Investment Strategy
• Defensive Stock
• Deferment Period
• Deferred Account
• Deferred Acquisition Costs (DAC)
• Deferred Acquisition Costs (DAC)
• Deferred Annuity
• Deferred Charge
• Deferred Income Tax
• Deferred Interest
• Deferred Interest Bond
• Deferred Long-Term Liability Charges
• Deferred Payment Option
• Deferred Profit Sharing Plan (DPSP)
• Deferred Profit Sharing Plan (DPSP)
• Deferred Revenue
• Deferred Share
• Deferred Tax Asset
• Deferred Tax Liability
• Deficiency Agreement
• Deficiency Letter