Life Settlement Fraud

Life Settlement Fraud can take several forms. Bilking seniors by offering to negotiate a life settlement contract for a large upfront fee. Misrepresenting mortality factors to investors. High pressure telemarketing. Life insurance fraud by lying on an insurance application. All types of financial fraud and ponzi schemes are possible.

Viatical or Life Settlement scams could involve:

• Investment fraud
• High pressure telemarketing
• Financial scams
• Asking you to lie on Life Insurance application
• Senior Fraud

Don't be a victim of a Life Settlement Fraud scheme or other insurance fraud targeting seniors. Of course there will be good opportunities for the cautious, but as with any type of financial dealings there will be scams. So when some one approaches you with this great new idea, write no checks until you talk to your trusted financial advisers first.

Life Settlement Companies

Life Settlement Companies. Here are a couple of the better lists of companies available on the web. As I did a link check in preparation for reposting this list I found several invalid links. One of the problems with many government agencies is as administrations change the new people want to reorganize and discard the work of their predecessors.
Words of caution: I started assembling this list in April of 2008. It quickly became apparent that many state insurance departments were not keeping their lists up to date. This is due more to lack of man power and funding than anything else. So, if a company, agent or broker claims to be authorized in a state and you can not find a reference then give your state insurance department a call to verify.
Also, companies licensed in one state may or may not be licensed in another.

• Connecticut Insurance Department List of Licensed Providers
• Texas Department of Insurance List

If you wish to do your own search for Life Settlement Companies try adding your state to the keyword "life settlements." Like this: Ohio life settlements. Other suggested searches: "life settlement provider," "viatical broker," "life settlement broker."

Life Settlement Questions

Life Settlement Questions for alert babyboomers. Life Settlement companies have been talked about by just about everyone from Frank Kaiser of the senior journal "Suddenly Senior" to Kai Ryssdal of NPR's  Marketplace. Finding reliable companies can be a daunting task. Here are a few common sense questions you should ask any company if you are considering this option.

Questions to ask Life Insurance Settlement Companies

• Is the company licensed or registered for life settlements in your state?
• Does the company have the funds available or will they need to find an investor? 
• How long will it take to get the money?
•  How will the money be delivered? Company check? Certified bank check? An escrow account is probably the best solution.
• In the contract, when and how are the funds to be delivered? This should be your worst case scenario. Usually the company will deliver the funds in a few days. Still it would be best to know what the contract says.
• Many states require Disclosures. A statement which tells the seller his rights and options. If the agent forgets to tell you about it you should ask for it. Also have him explain anything you do not understand.
• Ask what happens if you change your mind. This is called Recission. Usually there is a period of several days where you can opt out.

If you can think of other Life Settlement Questions please add them to the comments below.