Hear Dave talk about why viatical investments are never good options, for a few reasons.
QUESTION: Lee asks about viatical settlement investments. He heard of an offer that guarantees 10% returns. Does that sound fishy? Dave doesn’t have good things to say about them.
ANSWER: Everything about viaticals is fishy. Stay away from them. A viatical investment is where you are buying a position in someone’s life insurance policy who is terminally ill. Mathematically, you are betting on when they die. There are a tremendous amount of scam artists around them. The ones who try to do them legitimately have a problem because it’s hard to predict when someone will die. It’s also a little bit macabre. These things are a mess. They are being slammed by attorney generals in states all across America. The ones who are in it legitimately are usually so incompetent at the process that you should stay away. Do not put money in viaticals.