Final answer:
A viatical settlement, is when an insured sells or assigns a Life Insurance policy to another party to get money to pay for terminal expenses.
Step-by-step explanation:
When an insured sells or assigns a Life Insurance policy to another party to get money to pay for terminal expenses, it is known as a Viatical Settlement. In a viatical settlement, the insured person typically receives a lump sum payment from the buyer in exchange for transferring the ownership rights of the policy to the buyer.
The buyer then becomes the new beneficiary and continues paying the premiums until the insured person passes away, at which point they receive the death benefit.