Final answer:
In a Viatical Settlement, the viator receives a lump sum payment that is less than the policy's death benefit but greater than the cash surrender value, offering financial relief for the policyholder.
Step-by-step explanation:
In a viatical settlement, the viator is the person who owns a life insurance policy and decides to sell it before the policy matures or pays out a death benefit. When the policy is sold, the viator receives a lump sum payment from the viatical settlement provider. This lump sum payment is typically a percentage of the death benefit of the policy, but it can vary depending on factors such as the viator's life expectancy and the policy's cash surrender value. The viator may use the funds received from the viatical settlement for any purpose.