Informational sites about viatical and senior settlements are listed here. Both types of settlements allow a person to sell his life insurance policy. A viatical settlement allows a terminally ill person to sell his policy, whereas a senior settlement allows someone senior in age to sell her policy. In either case, the existing beneficiaries will be removed from the policy. Instead, the eventual death benefit will go to the company purchasing it.
The term life settlement is often used, but it is not well defined. Some companies use it as a synonym for senior settlement; others use it to apply to any sale of a life insurance policy to a third party.