A viatical settlement involves an agreement between a third party and which type of individual?

A viatical settlement is a financial arrangement that allows a terminally ill individual to sell their life insurance policy to a third party for a cash payment that is typically less than the death benefit. This arrangement provides the terminally ill person with immediate funds to help cover medical expenses or other costs during their remaining time.

The policyowner, who is often the insured person, is the one who enters into the agreement with the third party. Since the individual is terminally ill, they have the right to sell their life insurance policy for a lump sum, thus enabling them to access funds that they might need urgently. This process benefits both parties: the policyowner gets cash, and the third party can profit when the policy eventually pays out upon the insured’s death.

In contrast, other individuals mentioned in the choices, such as the beneficiary, the insurance agent, or the medical provider, do not participate in the viatical settlement in the same way. The beneficiary is typically designated to receive the death benefit but does not have ownership rights over the policy or the ability to sell it. The insurance agent's role is primarily in facilitating the policy and managing the insured's needs, rather than entering into settlements. Lastly, the medical provider is responsible for patient care