A viatical settlement involves selling a life insurance policy to a third party for immediate cash, typically to cover expenses associated with terminal illnesses.
Viatical settlement (C): The policyowner receives a percentage of the death benefit to cover high medical costs or improve their quality of life.
Nonforfeiture options (A): Relate to preserving cash value if the policy lapses, not a sale.
Accelerated death benefit (B): Involves accessing a portion of the death benefit directly from the insurer, not through a third party.
Survivorship policies (D): Cover two insureds and pay the death benefit only after both have passed away, unrelated to this case.
[References: Maryland Viatical Settlement Law and Insurance Code., , , ]
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