Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as Viatical Settlement
Explanation:
Viatical settlement refers to the sale of a life insurance policy by the owner to a third party for a amount which is more than its surrender value but less than its net death benefit.
Viatical settlement provides the policy owner with a lump some amount of money.
The viatical settlement is tax-free as per the Health Insurance Portability and Accountability Act (HIPAA) 1996
