Are there any other special risks presented by investment in viatical settlement contracts?
Investment in viatical settlement contracts also present special risks in the areas of term insurance, group policies and the issue of investing in policies that are still within the contestability period. Term policies. A term policy is issued for a specific time period. The insurance company will not pay the death benefit if the viator outlives that time period. If you purchase an interest in a term policy, you will be dependent on the viatical company from which you purchased the viatical settlement contract to be able to renew the policy when the term expires. It is possible that the insurance company will not allow renewal of the term policy. Because the insured has viaticated the policy (or sold it in a viatical transaction) he or she must be either terminally ill or have a life threatening health condition. That means the person is uninsurable. So unless the policy has a guaranteed renewal provision, the viator could not go out and buy more coverage. So the investor may not be a
Related Questions
- There are lots of people who advertise that they will pay cash for our house. What is so special about The Intercoastal Investment Trust?
- When presented with needs for special PC configurations during refresh, what should an agency do?
- Are there any other special risks presented by investment in viatical settlement contracts?
