If the insured under a whole life policy is diagnosed with cancer, which statement is most correct?

The statement regarding the ability of the insured to enter into a viatical settlement, providing him with 50-80% of the policy's death benefit, is accurate and reflects the typical terms associated with viatical settlements. A viatical settlement is an agreement in which a terminally ill policyholder sells their life insurance policy to a third party for a lump sum that is less than the death benefit but more than the cash value of the policy. This settlement allows the insured to receive financial assistance for medical expenses or other costs they may face due to their illness while still providing the buyer with a payout upon the insured's death.

The range of 50-80% is generally standard in the industry for viatical settlements, depending on factors such as the amount of the death benefit, the life expectancy of the insured, and other underwriting criteria.

The other options, while possible in certain contexts, do not align with the typical expectations or benefits of a viatical settlement for someone diagnosed with a serious illness like cancer.