Who is referred to as the owner of a life insurance policy seeking a viatical settlement?

The owner of a life insurance policy seeking a viatical settlement is referred to as the viator. This term specifically denotes the individual who holds the life insurance policy and is seeking to sell it for a lump sum cash payment, usually because they are facing a terminal illness or have a limited life expectancy. The process of viatical settlements allows the viator to access the death benefit early in order to cover expenses or improve their quality of life during their remaining time.

Understanding this terminology is crucial in the context of life insurance and viatical settlements, as it clarifies the roles of the parties involved. Knowing who the viator is helps differentiate between the policyholder, those who may benefit from the policy (such as beneficiaries), and those with roles in facilitating the transaction (like agents). Recognizing these distinctions ensures a clearer grasp of the processes involved in viatical settlements and aids in compliance with relevant regulations.