A life settlement transaction can take time to complete. Gathering medical information and the negotiating process can take weeks to months. Naturally decisions change with time as well. Settlement regulations exists in 27 states, as of 1/01/10, allowing for a period of time to reconsider a life settlement sale.
A”recision” period of 15 days from the date money exchanges hands is regulated by the approved states and in some cases 30 days from the date documents are signed. When purchasing life insurance, it is known as a “free look” period. These regulations are designed to protect the consumer from circumstances that change and unplanned problems in their decisions completing a life settlement.
The settlement is a financial exchange based on anticipated future events. “What if I were diagnosed with a terminal illness” the day after the transaction. Clearly all parties want the best outcome so the regulations are there for the consumers protection and obvious changes. In other circumstances a “change of heart” in who might benefit is the motivation to reconsider a life settlement. “Changing your mind is your option”. Once the settlement transaction is complete and the waiting or recision period has expired, the decision is final and legally binding.
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