A liver cancer diagnosis can change many aspects of your life, including your financial situation. Health insurance doesn’t always cover all costs especially those associated with alternative therapies or daily living expenses. You may be wondering: Can you sell your life insurance policy after a liver cancer diagnosis? In many cases, the answer is yes and doing so through a viatical settlement may provide much needed financial relief during treatment.
Understanding Viatical Settlements for Liver Cancer
Viatical settlements allow policyholders with serious illnesses to sell their life insurance policies to a third party for a lump sum cash payment. The buyer becomes the policy beneficiary and assumes responsibility for future premium payments. In return, the seller receives immediate funds that can help cover medical expenses not covered by health insurance, daily living costs, or simply provide financial stability during a challenging time.
Liver cancer, particularly in advanced stages, often meets eligibility criteria for a viatical settlement. This includes hepatocellular carcinoma (HCC), which is the most common type of primary liver cancer, as well as cholangiocarcinoma (bile duct cancer) and metastatic liver cancer that has spread from other parts of the body, such as the colon, breast, or lungs. Because these conditions can significantly impact life expectancy, many patients with liver cancer may qualify to access the value of their life insurance policy while they are still living.
When Liver Cancer May Qualify
Viatical settlement eligibility depends on several factors. While not every liver cancer diagnosis will automatically qualify, advanced stages of the disease are often eligible. Some of the factors that may affect eligibility include:
- The stage of liver cancer at the time of diagnosis
- Life expectancy, typically 24 months or less for viatical settlement eligibility. (Longer life expectancies can still qualify for life settlements.)
- The individual’s age and overall health condition
- The type and face value of the life insurance policy
- Whether premiums are current and the policy is in good standing
In addition to primary liver cancer, patients with liver metastases from other cancers may also qualify. Treatments such as liver resection, ablation, transarterial chemoembolization (TACE), radiation therapy, chemotherapy, immunotherapy, targeted therapy, and liver transplantation may all play a role in how life expectancy is determined during the evaluation process.
How the Viatical Settlement Process Works
The process of selling your life insurance policy after a liver cancer diagnosis is typically straightforward. Once eligibility is established, these are the usual steps:
- Policy Review – Your life insurance policy is reviewed to confirm basic eligibility requirements.
- Medical Review – Medical records are evaluated to assess your current health and estimate life expectancy.
- Offer Made – Based on these reviews, a purchase offer is presented for your policy if value is found and there is interest.
- Sale Completion – Once you accept the offer and contracts and changes of ownership and beneficiary are completed, the buyer assumes responsibility for premium payments, and you receive a lump sum payment.
One of the key advantages is that the funds you receive from a viatical settlement can be used however you choose. Many people use the funds to pay for out-of-pocket medical costs, experimental treatments not covered by insurance, household expenses, or to simply reduce financial stress during treatment.
Viatical settlement proceeds are typically not taxed, as they are considered an advance of the death benefit. However, because individual circumstances can vary, we always recommend consulting with a trusted tax advisor to fully understand how viatical settlement taxation may apply to your specific situation.
Benefits of Selling Your Policy
The financial strain of liver cancer treatment can be overwhelming. Selling your life insurance policy through a viatical settlement may offer several important benefits:
- Immediate access to funds for medical and living expenses
- No longer having to pay future life insurance premiums
- The ability to seek additional or alternative treatments
- Flexibility in how funds are used, without restrictions
- Financial relief that allows you to focus on care and quality of life
If you’ve asked yourself, can you sell your life insurance policy after a liver cancer diagnosis?, the answer is often yes. A viatical settlement may provide you with access to funds that can help you manage expenses and reduce financial stress while you focus on your treatment.
If you or a loved one is facing liver cancer, exploring your viatical settlement options may be an important financial step during a very difficult time. To learn if you qualify, please call 800-973-8258.
DO YOU QUALIFY?