Investment Trusts

Posted onDecember 08, 2011 - 9:04 pm by Admin | 0 Comments

Viatical settlements are a type of investment that investors, particularly seniors, are often approached to buy. While viatical investments are legal, they can be risky, and many of the products sold under less-than-honest claims.

Viaticals Defined

Viaticals, which are also sometimes called life settlements or senior settlements, target the life insurance benefits of the terminally ill. Here is how viatical investments work: A patient with AIDS, cancer or other terminal illness sells his or her life insurance policy to a small group for half of the policy's cash benefit. The patient uses the money for medicine or simply to improve his or her quality of life. Investors get a share of the death benefit when the insured later dies, and a fee is paid to the viatical investment broker. Those selling viatical investments typically claim investors will get a return of 20 percent or more.


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