Join for Just $16 A Year
- Discounts on travel and everyday savings
- Subscription to AARP The Magazine
- Free membership for your spouse or partner
Welcome to the AARP Discussion Board. Here you can talk with peers about current events ranging from Social Security to caring for your parents to the latest on health care reform. It is also the perfect place to exchange healthy eating recipes and job hunting tips.
These forums are for you to engage and have fun meeting new people. Just remember the community code: Be nice!
Viatical and Life Settlements
posted at June 11, 2012 9:34 PM EDT
First: June 11, 2012
Last: June 11, 2012
There are three types of fraud. Beware insurance agents who try to lure you to sign up for new life insurance, which will be sold to investors. Do this and you will be a party to fraud. The investor may be another senior. The policy can be canceled by the insurer, leaving the senior who invested with nothing. Or that senior may sue you, to try to recover the money.
The second and most widely known is investor fraud. Never invest in these transactions unless you have the advice of an attorney--someone who does not profit from the transaction. If it costs a few thousand for that advice, you could be saving tens of thousands.
The third type occurs when you decide to sell a policy you owned for many years. You will be paid more than the insurer would pay, if you tried to cash out the policy, but rarely will you be paid true fair market value. I have a collection of lawsuits filed by families of deceased insureds and, in one case, by the insured after he learned the agent was paid almost as much as he received. Again, get advice from someone who does not profit from the transacation, someone who works exclusively for you.