Buying the beneficiary position on a life insurance policy of someone who is dying

Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as Viatical Settlement

Explanation:

Viatical settlement refers to the sale of a life insurance policy by the owner to a third party for a amount which is more than its surrender value but less than its net death benefit. Viatical settlement provides the policy owner with a lump some amount of money. The viatical settlement is tax-free as per the Health Insurance Portability and Accountability Act (HIPAA) 1996