Is Viatical Investment for me?

Viatical settlements can be very risky. It is not a suitable investment for every person. A good definition of the investor can be described as follows:

1. Investor who realizes that a Viatical Investment is unlike shares or stocks of a company.
2. People who are willing to pay extra for engaging outside council in order to review each step before they put their signatures on the respective forms.
3. Investors with at least $ 20,000 to be put up as a share holder in the Viatical Settlement Companies who are the beneficiary of the life insurance policy of the viator.
4. It is advisable only for people who as an individual have a minimum net worth of $ 150,000 and have a gross income of $ 100,000 a year.
5. Usually people with a liquid net worth of $250,000 are considered as prospective investors.
6. Seniors who have adequate additional products in their IRA funds to cover the mandatory 70 1/2 disbursement rule can be considered as the right people for such an investment.
7. Viaticals are also not feasible for people who have Viaticals as their prime or the only investment.
8. Viatical investment is also not advisable for people, especially senior citizens, on a fixed income.

Top 4 Myths:

No 1 Myth: Return on viatical settlements is guaranteed:

There is no such thing as a guaranteed return on viatical settlements. The return is completely dependent on when the viator dies. Any Viatical Settlement Company or any Viatical Settlement Broker who promises you a certain commitment is probably misleading you.

No 2 Myth: No additional payments are required:

The insurance company has the full authority to discontinue the life insurance policy of the viator if the premium on the policy is not paid on a regular basis. However the death of the viator cannot be predicted. If the viator lives longer than the expected time, then you might be required to pay additional premiums in order to keep the life insurance policies active.

No 3 Myth: Money back if insured person does not die:

This is a false statement. In no circumstance can the principal amount be returned if the viator does not die. Your investment can only be profitable if the viator dies within the stipulated amount of time. If the viator is still alive that means that the policy has not matured. Thus the investor cannot claim any money, not even the principal amount.

No 4 Myth: Viatical investments are safe investments:

No, these cannot be termed as safe investments as they are unpredictable. You could potentially lose all your money in case the policy does not mature.  There is also the potential to make a large return on the initial investment. Viaticals are certainly considered as risky investments and anyone considering investing in them should carefully research their options before making a commitment.