For individuals living with chronic obstructive pulmonary disease (COPD), managing the progression of the illness can bring growing physical limitations, emotional strain, and financial pressure. Selling life insurance with advanced COPD may offer a valuable financial solution by allowing qualifying policyholders to access a portion of their policy’s value now rather than waiting for the death benefit to be paid out later. A viatical settlement can help cover medical expenses, caregiving, and daily living costs during a difficult time.
What Is Advanced COPD?
COPD is a progressive and irreversible lung disease that includes conditions such as chronic bronchitis and emphysema. Over time, it leads to reduced airflow, persistent coughing, chest tightness, shortness of breath, and frequent respiratory infections. In advanced stages, patients often experience severely limited lung function (FEV1 below 30% of predicted), require long-term oxygen therapy, and may struggle with basic activities such as walking or talking without becoming winded.
Common Treatments for Advanced COPD
While COPD cannot be cured, treatments can help improve symptoms and quality of life. These may include:
- Bronchodilators: Medications such as tiotropium (Spiriva) or salmeterol (Serevent) help relax airway muscles to make breathing easier.
- Inhaled corticosteroids: Fluticasone (Flovent) or budesonide (Pulmicort) may reduce inflammation in the lungs.
- Combination inhalers: Medications like Symbicort or Trelegy Ellipta combine bronchodilators and steroids for more effective symptom control.
- Pulmonary rehabilitation: A supervised program of exercise, education, and support designed to improve lung function and stamina.
- Supplemental oxygen: Often necessary 24/7 in advanced COPD to maintain adequate oxygen levels.
- Oral medications: Such as roflumilast (Daliresp) for those with chronic bronchitis and frequent exacerbations.
- Antibiotics and antivirals: Used to treat or prevent respiratory infections that can worsen symptoms.
- Surgical interventions: In rare cases, lung volume reduction surgery or lung transplantation may be considered for eligible patients.
Despite treatment, many individuals with advanced COPD experience frequent hospitalizations, emergency care needs, and declining quality of life. These issues often come with substantial financial challenges.
The Cost of Living with Advanced COPD
Advanced COPD often requires ongoing medical care, durable medical equipment, home oxygen, and possibly full-time caregiving or assisted living. Even with Medicare or insurance coverage, many patients face out-of-pocket expenses such as:
- Monthly inhaler and medication costs
- Oxygen refills and maintenance
- Transportation to appointments or rehab
- In-home nursing or personal care aides
- Modifications to the home for accessibility
This financial burden can become overwhelming, especially when income is reduced due to disability or retirement.
How a Viatical Settlement Can Help
A viatical settlement allows a life insurance policyholder with a serious health condition to sell their policy to a third-party buyer in exchange for a lump sum cash payment. The buyer takes over the premium payments and receives the death benefit when the insured passes away.
Selling life insurance with advanced COPD in a viatical settlement may be possible if the insured has a life expectancy of two years or less, based on medical records and physician assessments. Many patients in Stage 4 COPD meet these guidelines, particularly when they rely on oxygen, are frequently hospitalized, or are no longer able to care for themselves independently. Those with longer life expectancies may still qualify for life settlements if they are 65 or older.
Advantages of Selling Your Policy
The payout from a viatical settlement can be used for:
- Covering treatment or prescription costs
- Hiring home care or respite caregivers
- Paying off debts or making mortgage payments
- Traveling or fulfilling end-of-life goals
- Relieving loved ones of financial stress
Unlike loans, viatical settlements do not need to be repaid. The money is yours to use however you see fit. In most cases, viatical settlements are not taxed, as they are considered an advance of the death benefit, but it’s always best to consult with a trusted tax advisor.
When to Consider Selling a Policy
If you’re living with advanced COPD and find it difficult to manage financially, it may be time to explore your options. Not all policies qualify, and not all individuals with COPD will meet health requirements, but for those who do, the payout can make a meaningful difference.
If you’d like to learn more about selling life insurance with advanced COPD, we can help you learn if you qualify and walk you through the process with no obligation. 800-973-8258
DO YOU QUALIFY?