Four Risks with Viaticals

By: Source: AARP Bulletin Today Date Posted: 2003-06-24 09:08:10

  • The insured may live longer than projected, reducing your return and tying up your money. You may also pay more in premiums.
  • The life insurer can contest the policy (normally within two years after it's issued), refusing to pay out death benefits if it discovers fraud.
  • You could face delays in receiving death benefits if the policyholder's heirs challenge any changes made to the policy.
  • Viaticals aren't liquid, so you can't access the policy benefits until the policyholder dies and the life insurer pays the death benefits.

Source: The Washington-based Coalition Against Insurance Fraud.

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