When a terminally ill insured sells their life insurance policy to a third party the transaction is called?

When a terminally ill insured sells their life insurance policy to a third party, the transaction is called a "viatical settlement." In this arrangement, the insured receives a lump sum payment that is typically less than the policy's death benefit but provides immediate financial relief. The third party then becomes the beneficiary of the policy and collects the full death benefit upon the insured's passing.