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A viatical settlement is a contractual agreement to provide a life insurance policyholder immediate cash in exchange for the sale and transfer of life insurance policy ownership rights.
Life insurance. Life insurance can be a source of cash. You may be able to borrow from a life insurance policy's cash value. Or the person with dementia may be able to receive a part of the policy's face value as a loan. This is called a viatical loan and is paid off upon the person's death.Some life insurance policies offer accelerated death benefits.ife insurance. Life insurance can be a source of cash. You may be able to borrow from a life insurance policy's cash value. Or the person with dementia may be able to receive a part of the policy's face value as a loan. This is called a viatical loan and is paid off upon the person's death.