Insurance Viatical SettlementsAlong with so much of the English language, the name has its origins in a Latin word, viaticum, which means provisions for a journey. These settlements are attractive to a viator (seller) because the person gets a significant amount of money that will ease the financial stress of their final days. Viatical settlements are attractive to investors for their potentially high -- but not guaranteed -- rates of return. The way it works in the simplest case is. The investor is then responsible for paying the premiums associated with the life insurance policy. t. If the viator dies shortly after the transaction is completed, the investor makes a large amount of money. If the viator survives several years past the predicted life expectancy, the investor will lose money. Like any other deal, there are risks to both parties. For the viator, the main risk is settling at too low a price. For the investor, there are risks of not receiving the full death benefit if the insurance company goes bankrupt, not receiving any death benefit if the insured committed fraud on the insurance application, etc. As of this writing, a few honest and a number of less-than-scrupulous companies market viatical settlements to viators and investors. Be careful! This investment is not regulated, so there is little or no protection for investors. |
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Menu Eligibility for Viatical Settlements Insurance Viatical Settlements Tips for potential investors in viatical settlements What are Life Insurance Settlements Investing in a viatical settlement involves risks Secrets to successful viatical settlement investing
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