When A Viator Executes A Contract Of Sale Of Their Life Insurance Policy, Can They Change Their Mind?
Most people are unaware of the definition of a viator. When it comes to a life insurance policy a terminally ill policyholder may wish to access the funds of the policy prior to their death. The policyholder then is defined as the viator.
The viator would then contact an agent that deals with investment companies that purchase these policies and will provide between 50%- 80% of the insurance policy to the viator depending upon their life expectancy. These companies typically resell the life insurance policy to an investor who is then the sole beneficiary of the policy.
Once the contract of sale is executed and the cheque is delivered, the viator may still cancel the contract. In most states, there is a stipulated time frame in which the viator has the right to cancel. This time frame is usually between 15 to 30 days. The viator must return the full amount of the funds to the viatical company. It is highly recommended that the viator send the cheque certified mail with a return receipt to verify the return delivery of the money.