A viatical settlement is arranged between a viatical company and a/an?

A viatical settlement is specifically a financial transaction that involves a terminally ill insured individual who sells their life insurance policy to a viatical settlement company for a lump sum payment that is less than the policy's face value. This arrangement allows the terminally ill person to access funds during their lifetime, which can be particularly helpful for covering medical expenses, paying off debts, or other financial needs.

In this context, the terminally ill insured is the party that initiates the viatical settlement, as they are looking to convert their life insurance policy into immediate cash. Other parties in the transaction do not engage in the same capacity; for example, a lender typically provides loans rather than purchasing policies, while an insurance producer facilitates sales of insurance but does not act as the insured in a viatical settlement. The beneficiary, while being a person tied to the policy, does not play a direct role in the execution of a viatical settlement.