When the insured returns to health in a viatical contract, who is primarily responsible for other costs?

In the context of a viatical contract, the purchaser assumes responsibility for costs associated with the policy once the insured returns to health. A viatical contract typically involves the sale of a life insurance policy by an insured individual to a third party, known as a purchaser, often when the insured is terminally ill. If the insured makes a recovery, the dynamics of the agreement shift, and it falls to the purchaser to cover any ongoing costs or premiums related to the policy.

The policyowner, while initially responsible for the premiums until the sale occurs, transfers those responsibilities upon entering the contract. The insurer's role primarily involves managing the policy's terms under the initial agreement and may not influence further obligations once the contract is enacted. The beneficiary does not have responsibility for costs arising from the policy; their role is usually more passive, given that they are the recipients of the benefits after the insured's death.

Thus, the responsibility for other costs in a viatical contract rests with the purchaser, highlighting their vested interest in maintaining the policy after the insured's improvement in health.