What advice can you give me on viatical investing?

Answer by  tamarawilhite (17883)

Viatical investing is investing in life insurance policies. Someone who is elderly or ill and can no longer afford their life insurance premiums or needs large sums of money now can sell their insurance policy. The investors pay the policy holder, and they become beneficiaries of the policy, but must take over the policy premiums.

Answer by  LauraCalico (278)

Viatical settlement investing is an area in which one should definitely proceed with caution. It is a high risk investment, since it is a matter of taking a gamble on how long someone will live. Making things even more risky is the fact that laws vary by state, and there have been issues with con artists.

Answer by  tamarawilhite (17883)

Viatical investing is buying life insurance policies from those who may not be able to pay them anymore or who need the money now before death. You only make money if they die on or before your break even date. If they live longer than expected, you lose money. Diversification is investing in multiple life insurance policies.

Answer by  tamarawilhite (17883)

When you invest in viaticals, you are essentially betting on when someone will die. To "diversify", buy a portion of a policy for several individuals.