A cancer diagnosis changes priorities fast. Decisions that once felt distant become immediate, and financial plans built for the future are suddenly tested by the cost of care today.
For many patients, the question isn’t whether they have insurance — it’s whether insurance is enough.
If you own a term life insurance policy, you may be surprised to learn that it can sometimes be sold and converted into immediate cash to help pay for cancer care. While term insurance is often viewed as having “no value” beyond its death benefit, that assumption isn’t always true — especially after a serious diagnosis.
This article explains how selling a term life insurance policy works, when it’s possible, and why some cancer patients choose this option to fund treatment and protect financial stability.
Why Cancer Care Creates a Financial Gap
Even with health insurance, cancer often brings expenses that aren’t fully covered, including:
- Out-of-pocket treatment costs
- Out-of-network specialists or cancer centers
- Travel, housing, and caregiver expenses
- Integrative or advanced therapies not covered by insurance
- Lost income during treatment
Over time, these costs can strain savings, retirement accounts, and family finances. For patients looking to avoid debt or financial disruption, existing assets — including life insurance — are often revisited.
Can You Sell a Term Life Insurance Policy?
Yes, in some cases, a term life insurance policy can be sold. This typically happens through a viatical settlement, which allows someone with a serious or life-threatening illness to sell their policy for a lump-sum payment while they are still alive.
Unlike permanent life insurance, term policies do not have cash value. However, a term policy may still be valuable to a buyer if:
- The insured has a qualifying medical condition
- The policy has sufficient face value
- The policy is convertible or can be maintained
- The life expectancy falls within qualifying guidelines
Not all term policies qualify, but many do — particularly for patients with advanced or metastatic cancer.
How Selling a Term Policy to Pay for Cancer Care Works
The process begins with a review of the policy and medical eligibility. If the policy qualifies, it may be sold for a lump sum that is often far greater than letting the policy lapse or canceling it.
Once sold, the buyer assumes responsibility for future premiums, and the policyholder receives cash that can be used immediately for cancer care or related expenses.
Funds are not restricted and may be used for:
- Medical treatment
- Travel and lodging
- Integrative or holistic therapies
- Household and living expenses
There is no repayment, no interest, and no impact on credit.
Why Some Patients Choose This Option
Selling a term life insurance policy is different from other ways of paying for cancer:
- It does not create debt
- It does not require monthly payments
- It converts an existing asset into liquidity
- It provides flexibility during treatment
For some families, using a policy now makes more sense than preserving a benefit that may no longer align with their immediate needs.
Cancer Care Financial
Viatical settlement companies like Cancer Care Financial specialize in helping cancer patients understand whether a term life insurance policy can be sold as part of a viatical settlement. As one of the leading viatical settlement brokers in the country, Cancer Care Financial works exclusively with individuals diagnosed with cancer, guiding them through a highly regulated evaluation process with clarity and discretion.
Rather than offering loans or insurance products, companies like Cancer Care Financial focus on education, eligibility review, and advocacy — helping patients understand their options and decide whether selling a term policy makes sense in the context of their treatment and financial goals.
Common Concerns About Selling a Term Policy
Does this take away a future benefit for my family?
For many families, access to care and stability today outweighs a future benefit — particularly if maintaining the policy is no longer affordable or practical.
Is this only for end-of-life situations?
No. Many patients explore selling a term policy while actively pursuing treatment, not only at the final stage of illness.
Is the process complicated?
While regulated and detailed, the process is managed by licensed professionals who handle documentation, underwriting, and coordination.
When Selling a Term Policy Makes Sense
This option is most often considered when:
- Cancer care costs are significant or ongoing
- Other funding options would create debt or long-term harm
- A term policy is no longer aligned with current financial priorities
- Patients want flexibility and control during treatment
It is not the right solution for everyone, but for the right situation, it can provide meaningful financial relief.
Rethinking Term Life Insurance During Cancer
Term life insurance is typically purchased to protect loved ones in the future. During cancer, that same policy can sometimes be repurposed to protect quality of life right now.
For patients navigating the financial realities of cancer care, selling a term life insurance policy may offer an alternative path — one that prioritizes treatment, stability, and informed choice during a challenging time.
