Selling Your Life Insurance Policy: What Every Cancer Patient Should Know
A cancer diagnosis changes everything—including your finances. Treatment costs, lost income, and unexpected expenses can leave patients and families searching for solutions. One option that many don’t realize exists is a viatical settlement, where you sell your life insurance policy for a lump sum of cash to help cover medical and living expenses.
But before moving forward, there are three critical things every cancer patient should know to ensure they get the most money possible for their policy. As a viatical settlement broker, I’ve guided many patients through this process. Here’s what I tell every client considering this option.
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1. Always Work with a Licensed Viatical Settlement Broker
A viatical settlement isn’t just another financial transaction—it’s a high-stakes decision that could significantly impact your quality of life. Working with a licensed viatical settlement broker ensures you have an advocate who understands the market, negotiates on your behalf, and protects your best interests.
Why a Licensed Viatical Settlement Broker Matters
- They access multiple buyers – Some buyers may offer more than others, and a broker ensures you get the highest bid. A good broker will push buyers into a bidding war for your policy to get you the most cash.
- They understand the legal and tax implications – Viatical settlements can have tax advantages in some cases, and a broker can help navigate these complexities.
- They prevent lowball offers – Direct buyers may pressure patients into accepting unfair deals, but a broker fights for the best value.
- They will walk you through the viatical settlement process from application to bids to closing to the end result of getting you paid.
Without a broker, you could leave thousands (or even tens of thousands) of dollars on the table—money that could help pay for your cancer treatment, integrative care, or everyday expenses.
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2. Never Accept the First Offer—There’s Often More Money Available
Many cancer patients don’t realize that their policy’s value can vary significantly depending on the buyer. The first offer you receive may not be the best one. That’s why shopping around and allowing multiple buyers to bid on your policy is essential.
How to Get the Most Money for Your Policy
- Allow multiple viatical settlement providers to review and bid – Different companies evaluate policies differently, and competition can drive up your offer.
- Ask your broker to negotiate aggressively – A good broker will push for every last dollar available.
- Be patient – The viatical settlement process can take weeks, but waiting often results in a higher payout.
Remember, this is your money and your future—don’t settle for less than what your policy is worth.
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3. Explore All Options Before Selling Your Policy
While a viatical settlement is a great option for many cancer patients, it’s not the only option. Before selling, make sure you understand all potential financial solutions that might be available through your life insurance policy.
Other Options to Consider
- Accelerated Death Benefit (ADB) – Some life insurance policies allow you to access a portion of the death benefit early if you have a terminal illness. This is typically tax-free but may be lower than a viatical settlement.
- Life Insurance Loans – Some policies allow borrowing against the death benefit. This isn’t an option for term life insurance but applies to some permanent policies.
While selling your policy may provide the largest lump sum, an ADB could be a better fit depending on your financial situation. Make sure to compare both options before making a final decision.
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Bonus Tip: Always Negotiate the Viatical Settlement Broker’s Commission
Viatical settlement broker commissions are negotiable. Brokers typically charge a percentage of the final settlement amount, but that doesn’t mean you have to accept whatever they ask for.
What’s a Fair Commission?
- In my opinion, no broker should charge more than 10% on a viatical settlement transaction.
- Some brokers charge as much as 30%, which is excessive and takes money away from you.
- Don’t be afraid to ask for a lower fee—a reputable broker will be transparent and willing to discuss their rates.
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Final Thoughts: Getting the Most from Your Viatical Settlement
A viatical settlement can provide much-needed financial relief during one of life’s most challenging times. However, not all offers are created equal. By working with a licensed broker, negotiating for the highest payout, and exploring all options, you can make the most informed decision for your financial future.
If you’re considering selling your life insurance policy to help pay for cancer care, Cancer Care Financial is a trusted viatical settlement broker with hundreds of successful viatical settlement transactions and very happy clients.
Ready to Explore Your Options?
Contact Cancer Care Financial today to speak with an expert who can guide you through the process.
