Six Tips Before You Invest In Viaticals
By: Source: AARP Bulletin Today Date Posted: 2003-06-24 09:00:29
Before you invest, do your homework to help you decide if viaticals or senior settlements are safe and right for you:
- Consult with a trusted financial adviser before you commit to any investment.
- Contact your state insurance or regulatory agency to check whether a firm and its sales agents or brokers are licensed to sell viatical or senior settlements (not all states require licensing).
- Ask about the firm's and broker's disciplinary histories and about past or pending litigation.
- Ask your state attorney general and Better Business Bureau about complaints, lawsuits or court rulings against the viatical company.
- If you're promised a guaranteed return on your investment, walk away. Viatical investments cannot be guaranteed: They are based on life expectancies that can vary widely.
- Insist on getting the address of the life insurance company and the number of the policy in which you're investing. Be sure the company and policy are real.
Sources: Department of Banking and Finance in Florida and the Washington-based Coalition Against Insurance Fraud.
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