Yes, you can cancel your viatical settlement agreement within a specific timeframe known as the “rescission period.” This period allows you to revoke the agreement without penalties and is typically 15 to 30 days from when you receive the settlement funds or sign the closing documents, whichever occurs first. After the rescission period, the settlement becomes binding, and cancellation is no longer possible. It is important to fully understand and be confident in your decision before proceeding, as the option to cancel is limited to this defined timeframe.
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:
- Researching viatical companies
- Contacting companies for more information
- Receiving an estimate of the viatical settlement payout
- Talking with a counselor about the settlement process
- Applying for the viatical settlement
- Verifying the medical and policy information
- Receiving an offer for the policy
- Review and signing of the final contract
- Change of policy ownership
- Funds are wired to the client
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.
What is a recission period?
A rescission period is a specific timeframe during which you have the right to cancel a contract without any fees or penalties.
What happens if I want to cancel outside the rescission period?
Unfortunately, it becomes much more difficult. Viatical settlement agreements are designed to be binding contracts. Once the rescission period ends, you may have limited options depending on the specific circumstances of your situation or the viatical settlement laws in your state.
