 |
ViaticalsViaticals defined are the discounted, pre-death sale of an existing life insurance policy on the life of a person known to have a terminal condition. These deals really started to become popular in the 1980s. The Investment attitude which existing in those years was generally positive toward these types of humanitarian transactions. Law Enforcement authorities increasingly have had to investigate scams with loses totaling seven figures within this industry as a whole. In a legitimate transaction, an individual purchases a life insurance policy from an insurance company through an insurance agent. After issuance of the policy, the insured person develops a terminal illness.
The insured person then, either through an insurance agent or a financial broker enters into a contract with a settlement company to sell their policy. The company buys the policy from the insured party and pays the insured party a percentage of the face value of the policy. The company finds an investor(s) who pays a percentage of the value of the policy to acquire the beneficiary rights of the policy. When the insured party assumes room temperature, the investor receives the insurance benefits in full, as provided by the terms of the policy. The Fraud happens when the financial companies attempt to predict when the insured person (viator) is going to die. With new science and medicines hitting the marketplace almost daily, people just were not dying soon enough for the policies to pay the double digit returns investors were promised. In fact, most had to start paying premiums to keep the policies from lapsing (ENDING).
CLICK BELOW FOR 15-EBOOK BUNDLE-$24.95
IRA Fraud
|
