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Avoid investment fraud in the Viatical Industry.
Before either the buyer or the viator enters into a viatical settlement, it is of utmost importance to do some research first. Because the industry is relatively new and viatical settlements are becoming more prevalent, there has been much investment fraud in the industry. Investors alone have already lost more than five hundred million dollars in the brief time that this industry has been active.
It has been noted that some viators do not reveal all risks that would concern the investor. This is why it is so important to do as much research as possible before investing. One way for the investor to assure he is putting money into a safe investment is to check the license of the viatical settlement company. Another important thing to confirm when investing in a viatical settlement is that the life insurance policy in question is based on the life of a person who has a life threatening illness, which is a requirement for the settlement to be considered a viatical. However, some misleading practice has been carried out in the past, so caution must be exercised.
There are several organizations that are on the lookout for misleading practices within the viatical settlement industry. The Securities and Exchange Commission presents information for viatical investors. They offer a toll-free number for investors to call to gain the necessary information before making a commitment to invest in a settlement. The SEC toll-free investor information service phone number is 800-SEC-0330. The Federal Trade Commission publishes a guide for terminally ill patients considering entering into a viatial settlement. Visit www.ftc.gov for more information.
The Viatical and Life Settlement Association of America is another organization that is helping to endorse the progress of honesty and reliability within the viatical and life settlement industry.
If there is any question about your viatical settlement, or if you feel you have been involved in misleading practices or fraud relating to viaticals, life, or senior settlements, the California Department of Insurance is the place to report it. Call their Consumer Hotline at 800-927-HELP (4357) or file a complaint online at http://www.insurance.ca.gov/CSD/Irfa_eng.htm.
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