Common misrepresentations and omissions
Risks
Rates of return may be projected but cannot be guaranteed
since advances in science and medicine may increase a viator’s life beyond that
which can be foreseen.
The longer the viator lives,
the lower the rate of return on your investment
So while a viatical company or salesperson might
“guarantee” a particular rate of return on your investment, remember that the
rate of return on an investment in viatical settlements cannot actually be
calculated since the longer a viator lives, the lower the rate of return on your
investment will be.
No one can accurately predict the life expectancy
of a viator. This is true not only because of possible breakthroughs in
treatments and cures for AIDS and cancer but also because of many other
variables such as: the experience of the medical personnel making the
prediction; the nature of the viator’s illness; and, if the viator has AIDS, the
definition of AIDS used by the viatical company.
| 