How do viatical settlement investments operate?
This description applies to brokered arrangements. The length of time of a viatical settlement investment starts with a determination by someone about how long the owner of that policy (viator) is going to live. At some point in the process of selling the policy, the viator’s medical records were reviewed and an estimate made about how long that person would live. The viatical company then pools the funds of investors to purchase policies. The viatical company matches investors (who all want to invest for the same period of time) with policies of viators who are expected to live for that period of time, usually anywhere from 12 to 48 months. The investor decides how long their money will be invested. The longer the investment period, the higher the return on the investment. A typical viatical settlement works as follows: Let’s assume an investor wants their money tied up for two years. Viatical settlement brokers rarely keep a portfolio of viatical settlement contracts, but instead go
