What if the client passes away shortly after selling their policy?
If the client dies at any time up to the end of the rescission period, the settlement contract automatically cancels (is rescinded). The death benefit will then revert to the original beneficiary. The provider will pay the policy owner’s contract-designated beneficiaries any proceeds it received from the policy, minus any money it already paid for the purchase of the policy and possibly any premiums paid to the insurance company to keep the policy current.
