What are the possible risks of fraud in viatical settlement investments?
• The policy is fraudulently obtained by the insured (for example, by concealing or misrepresenting his or her health condition) so the insurance company refuses to pay the death benefits. • The viatical settlement company misappropriates the investor s money and never purchases the insurance policies. • The investor is not the named beneficiary on the policy, and the viatical settlement company never pays the investor the proceeds.
