Investing In A Viatical Settlement Involves Risks

Viatical settlements are not like "certificates of deposit" --- here's why.

Viatical settlements are not a liquid investment. There is no return on the investment until the death benefit is paid. If you invest in a viatical settlement, you will not have access to these funds until after the insured dies.
The annual return on a viatical settlement investment can never be guaranteed because it is impossible to reliably predict an individual's actual life span. Improved medical treatments further increase the difficulty of making an accurate prediction.
Policy premiums must continue to be paid until the insured individual dies. Find out who will be responsible for paying the premiums; what guarantees are in place; and whether there is a chance you will have to invest more money. If the premiums are prepaid, know who will be responsible for making the premium payments if the insured lives beyond the life expectancy.

"Funds invested in viatical settlements may not be eligible for an IRA, 401(k), or Keogh. If you invest these funds in a viatical you will lose the favorable tax advantage. Check with your tax advisor.