Viaticals

The viatical business has been around for some time now.  As the article indicates… some people may find betting on an individual’s life expectancy distasteful however the U.S. Supreme Court once ruled that life insurance policies are property which can be bought and sold. Personal opinions aside, my issue here isn’t with the buying/selling of life insurance policies but the life expectancy opinions consistently rendered by one doctor which routinely counter (underestimate) life expectancy estimates provided by other industry services. Further, of interest is the fact that the doctor receives a commission if the life policy is sold to investors. As we often say in our industry… follow the money! The doctor’s lower than average expectancy estimates are then utilized by the firm and represented to potential investors. When the insured lives longer than the life expectancy report issued by the particular doctor then this directly affects the individual investors return on their investment, which is apparently contrary to representations made to them by the firm. Anyone see anything wrong here?

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