Do you feel like you are worth more dead than alive? Will a little liquidity relieve a lot of stress? Do not over look your life insurance policy when you need liquidity due to a battle with cancer… but do your Homework.
A Cancer Viatical Settlement may not be your only option, but being told that you are not sick enough and do not qualify for life insurance proceeds or life insurance advances can seem like the final letdown. If you are trying to cope with ever changing quality of life issues and expenses, you may find it difficult to find anyone that will advance or loan you money against a hard asset. If you are in need of immediate care then a Medicaid Life Settlement can help you pay for long term care costs while lifting the senior care burden from your family. Most people do not consider their life insurance policy an asset, but it is. Gain an idea of what your life insurance policy could be worth as a cancer viatical settlement with our life insurance settlement calculator.
Many life insurance policies offer an accelerated death benefit when you are terminally ill. Unfortunately, most require that your prognosis be only 6 months to a year. Your traditional options are very limited if you are chronically ill with cancer and not terminal… Limited financial options at a time of mounting health costs, increasing premiums and an absolute need for some liquidity. Limited options at a time when you are fighting to not be terminal. Stress levels and attitude do matter.
Unfortunately, the slip in health is the key. When you applied for your individual life insurance policy, you were most likely classified as preferred, standard or substandard to varying degrees. The ‘healthier’ you were, the less you paid for insurance because you were apt to live longer.
Life Settlements and Viaticals are somewhat the opposite. If you are in good health, there is most likely limited value in your life insurance policy as a life settlement, even if you are over 70. However, even if you are only in your 40’s or 50’s and battling cancer, there is a good chance that your life insurance policy may have significant value as a viatical life settlement.
- Case Study: 57-year-old female
- Policy Face Value: $750,000
- Annual Premium: $900
- Client Net Offer: $405,000
- Policy Type: UL
- Cash Value: $0
- Summary: The client no longer wanted the life insurance policy she’d owned for 16 years, so her agent suggested that she explore its market value. The client received a life settlement offer of $405,000 more than the policy’s cash value.
You should always take the time to revisit your plan for the life insurance proceeds you may sell. You purchased life insurance for a reason. But if your current situation dictates that you sell a portion or all of your insurance policy, evaluate the process and get the best price for it.
- Case Study: 67-year old male
- Policy Face Value: $200,000
- Annual Premium: $6,159
- Client Net Offer: $104,000
- Policy Type: Term
- Cash Value: $0
- Summary: This client was facing financial distress and his agent suggested that he consider a life settlement to help him pay for living expenses. Given the low face amount, there were a limited number of funders who would even consider this transaction, but we were able to complete an appraisal. The client ultimately received over 50% of the face amount.
First, research your rights as provided by the laws of your state and gain a basic understanding of the life settlement process. Remember to always get an independent life settlement appraisal before you shop price. Then plan for the proceeds and consult a tax advisor before you initiate a transaction.
Research: Know your rights and the Viatical laws for your state.
Appraise: Obtain your own appraisal early on.
Plan: Decide what is best for you, using accurate numbers
If you have specific questions about a Cancer Viatical Settlement and your situation, please feel free to contact us at 1-800-727-7654.