Why cancer patients are turning to viatical settlements has a lot to do with the overwhelming financial strain that comes with a cancer diagnosis. Cancer treatment is often expensive, and patients may face mounting medical bills, loss of income, and other financial challenges. A viatical settlement provides an option for cancer patients to sell their life insurance policy for a lump sum cash payment, offering much-needed financial relief during a difficult and uncertain time.
Understanding Viatical Settlements for Cancer Patients
A viatical settlement is a financial arrangement where an individual with a terminal or severe chronic illness, such as advanced cancer, sells their life insurance policy to a third-party buyer for a lump sum that is more than the cash surrender value but less than the death benefit of the policy. The buyer assumes responsibility for premium payments and receives the death benefit when the insured passes away. For cancer patients, this can be a valuable financial resource, allowing them to access funds immediately rather than waiting until the policy pays out.
Viatical settlements are typically available to individuals with a life expectancy of two years or less, although this can vary depending on the provider and specific circumstances. For cancer patients, eligibility is often based on the stage of the disease and prognosis.
Specific Cancers That May Lead to a Viatical Settlement
Several types of advanced-stage cancer may qualify patients for a viatical settlement, including but not limited to:
- Stage IV lung cancer – often treated with targeted therapies like osimertinib or immunotherapies such as pembrolizumab.
- Pancreatic cancer – may involve aggressive treatment regimens such as FOLFIRINOX chemotherapy or nab-paclitaxel with gemcitabine.
- Advanced breast cancer – could include CDK4/6 inhibitors (e.g., palbociclib, ribociclib) or HER2-targeted treatments (e.g., trastuzumab, pertuzumab).
- Colon and rectal cancer – treated with chemotherapy and biologics like bevacizumab or regorafenib.
- Liver cancer – where therapies might include sorafenib or atezolizumab with bevacizumab.
- Ovarian cancer – treatments may involve platinum-based chemotherapy (e.g., carboplatin, paclitaxel) and targeted therapies like bevacizumab or PARP inhibitors (e.g., olaparib).
- Leukemia – particularly acute myeloid leukemia (AML) or chronic lymphocytic leukemia (CLL), with treatments such as venetoclax, gilteritinib, or CAR-T cell therapies.
- Multiple myeloma – treated with proteasome inhibitors (e.g., bortezomib, carfilzomib), immunomodulatory agents (e.g., lenalidomide, pomalidomide), and monoclonal antibodies like daratumumab.
- Esophageal cancer – may involve chemoradiotherapy and targeted treatments such as nivolumab for advanced cases.
These cancers often require intensive and costly treatments, many of which are not fully covered by insurance. Additionally, patients may face indirect costs, such as travel to specialized treatment centers, lost wages, and expenses for home care or caregiving services.
Why Cancer Patients Are Turning to Viatical Settlements
There are several reasons why cancer patients consider viatical settlements:
Immediate Financial Relief
Cancer treatment can quickly deplete savings. Viatical settlements provide immediate cash that can be used for medical bills, treatments not covered by insurance, or essential living expenses. This helps reduce the financial stress that often accompanies a cancer diagnosis.
Access to Advanced Treatments
Many patients turn to viatical settlements to fund advanced or experimental treatments, such as CAR-T cell therapy or targeted biologics that may not be fully covered by insurance. These treatments can be expensive but potentially life-extending.
Quality of Life Considerations
For patients in the later stages of cancer, a viatical settlement can fund in-home care, hospice services, or modifications to the home to improve comfort and safety. It can also provide resources to fulfill personal wishes, such as spending time with family or traveling.
No Repayment Obligations
Unlike loans or credit lines, viatical settlements do not need to be repaid. The funds are typically tax-free if the insured is terminally ill, offering a clear advantage over borrowing.
Financial Planning for Family
Cancer patients may also use viatical settlements as part of a financial strategy to ensure that their loved ones are supported. By accessing the life insurance policy’s value during their lifetime, patients can address pressing financial needs and leave a legacy for their families.
Why cancer patients are turning to viatical settlements is clear: it’s a practical option to alleviate the financial burdens of cancer treatment and improve quality of life. By unlocking the value of a life insurance policy, patients gain access to essential funds, empowering them to focus on health, family, and making the most of their time.
To learn how much your policy may be worth, call us at 800-973-8258 for a no obligation policy appraisal.