How does an accelerated death benefit differ from a viatical or life settlement?

An accelerated death benefit allows a portion of the death benefit to be paid from the insurance company to the insured. This option, which is not available in all life policies, would offer a partial payment when the insured has a terminal illness or severe medical condition. After the insured dies the remaining death benefit will be paid to the beneficiaries. A viatical or life settlement is a one time sale of the life insurance policy to a 3rd party buyer.