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Sale Of A Life Insurance Policy (Viatical, Life And Senior Settlements)

Do I Have Any Responsibilities After A Sale Of A Life Insurance Policy?

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The sale of a policy eliminates any further rights and responsibilities to the insurer that you might have in a policy, including the responsibility of paying premium payments. However, you will have some type of contractual obligation to the purchaser of the policy.

For instance, purchasers want to know when an insured dies as soon after the death as possible. The longer a policy is outstanding, the less money the purchaser makes. Some purchasers keep track of an insured's continuing existence by searching data bases and using other mechanisms that don't involve the purchaser. At least one purchaser checks an insured's use of credit on the assumption that as long as the person is using a credit card, he or she is still on the planet.

Some purchasing companies:

  • Send postcards on a periodic basis, asking that you confirm your address, sign and return the card. In such case, there is also a requirement to inform the purchaser if you move.
  • Some companies call instead of sending a card.

Companies are usually somewhat flexible about the arrangements for maintaining contact, and may even allow you to name someone else as the "point person" to keep contact

Failure to follow the agreement will result in the purchaser taking steps to find out about your health status by contacting your spouse, significant other, or another family member, or by other means such as calling your doctor.

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