Completing a viatical settlement is a big decision. When you work with a viatical company, you get money in your pocket, but you also forfeit your insurance policy. Do you have questions such as “Can I cancel my viatical settlement agreement?” Ideally, you should research this decision and think about it carefully before jumping in, but if you change your mind, you can cancel the transaction.
When Can You Change Your Mind And Cancel My Viatical Settlement Agreement?
When you decide to work with a viatical company, you can change your mind at any point until the process is finalized. To help illustrate this point, here’s a breakdown of some of the steps in the process:
During any of those points, you can change your mind, and that’s perfectly okay. We understand that this can be a tough and emotional time in your life, and we respect your choice to do what’s best for your family, your finances, and your personal situation.
When Is The Deal Finalized?
Once you have accepted the offer for your viatical settlement, the viatical company will send you closing documents to finalize the transaction. In this contract, the recession period, or the amount of time you have to cancel the agreement, will be specified. The deadline to cancel the settlement varies from state to state. However, typically you have 30 days from when the closing documents are signed or 15 days from when you receive funds from the viatical company, whichever date occurs first.
Can You Change Your Mind Later?
Unfortunately, once the recession period as outlined in the contract for your viatical settlement has passed, you cannot change your mind about the settlement. However, there are options you can explore before proceeding with a viatical settlement.
For instance, if you own multiple life policies, you don’t have to sell all of them when completing a viatical settlement. You can sell as many or few life policies as you like. Many people choose to sell one policy and hold on to their other policies to sell to a viatical company at a later date if needed. Some individuals choose to sell all of their policies because they no longer need them for their original use. Another option individuals choose to pursue is called a backend agreement. A backend agreement allows policy owners to retain a portion of their viatical settlement payout for their desired beneficiaries.
What If I Already Sold My Policy?
If you have already completed a settlement and have passed the deadline for cancellation, there are alternative options. For instance, you can always look into getting a new life insurance policy. Or you can use some of the settlement money to buy life insurance on other family members, which may be an alternative to think about as well.
If you have questions, please contact us directly at 877-658-1360 or you can get an instant estimate to see what your policy is worth. At American Life Fund, we have extensive experience working with people diagnosed with cancer and other life-threatening conditions. Contact us today to learn more.
Lacey is a compassionate and dedicated marketing director at American Life Fund, a leading life and viatical settlement company. Lacey has made it her mission to help patients with life-threatening illnesses and their families get the financial support they need during difficult times.
Disclaimer: American Life Fund is not a licensed provider and may not be licensed in your state. Principles hold brokers license in various states nationwide. Due to life settlement regulations varying state by state, our services are not available to residents in all states, including Georgia and Florida. The content contained in this website is not applicable for consumers in states where American Life Fund is not permitted to make life settlement transactions, solicit or advertise. Any offer is conditional, contingent upon written terms and conditions, and is non‐binding, as well as subject to due diligence and execution of closing documents.