Understanding Viatica Investments: Risks and Opportunities

Viatica (also known as "viaticum" or "viaticals") is a type of life settlement investment that involves buying the rights to receive the future payments of a life insurance policy from a policyholder who is terminally ill or elderly. The term "viatica" comes from the Latin word "viaticum," which means "provisions for a journey."

In a viatica transaction, an investor typically purchases the rights to receive the future payments of a life insurance policy from a policyholder who is no longer able to pay the premiums or who needs the money to cover living expenses. The investor then receives the future payments of the policy, which can include death benefits, as well as any cash value that has accumulated in the policy.

Viatica investments are often marketed as a way for policyholders to monetize their life insurance policies and receive immediate cash, while also providing investors with a potential source of returns. However, viatica investments can be risky, as the underlying policyholder may not survive long enough to receive all of the payments, and there is always the risk that the policyholder may change their mind and decide to keep the policy in force. Additionally, viatica investments are not regulated by the Securities and Exchange Commission (SEC), which means that investors may not have the same level of protection as they would with other types of investments.