A viatical settlement (from Latin viaticum, something received before death) is the sale of a policy owner's existing life insurance policy to a third party for more than its cash surrender value, but less than its net death benefit. Such a sale provides the policy owner with a lump sum. The third party becomes the new owner of the policy, pays the monthly premiums, and receives the full benefit of the policy when the insured dies.

Viatical settlements are ordinarily sold by, or on behalf of, an insured who is terminally or chronically ill. As medical advancements improved the lives of those persons living with terminal or chronic illnesses, the life settlement industry emerged.

Viatical Settlement as a term is considered out of date. The industry uses life settlement as the formal terminology. Technically, a viatical is a life settlement where the insured has less than two-year life expectancy. However, some jurisdictions, such as the U.S. state of Maryland, use the term viatical settlement instead of life settlement in their regulatory documents.