Didn 60 Minutes report that viaticals are the “perfect no-risk investment”?
Some promotional materials from viatical companies still use this out-of-context quote from a 60 Minutes program broadcast in 1995. Program host Morley Safer actually said: “And, sadly, the deadliness of AIDS makes (viatical settlements) a perfect no-risk investment: quick profits guaranteed in the death futures market with enough buyers available for an AIDS patient to shop around. Value is graded on the bleakness of medical charts.” But as outlined in Kiplinger’s Retirement Report (Dec. 1998), this show aired before the death rates of those infected with HIV began declining dramatically because of new drug treatments. The prognosis for patients with AIDS and HIV is far different today than it was five to eight years ago. And guessing when someone will die is never a sure thing. There is no such thing as a “no-risk” investment and not every investment is a good match for every investor. Viaticals are definitely risky and may not be “perfect” for you.
