Selling a life insurance policy with breast cancer
An eligible life insurance policy may be a valuable source of funds during and after treatment.
At a glance
- Typical payout40-70% of face value
- Best fitDepends on stage & prognosis
- Tax treatmentOften tax-free under §101(g)
- Timeline30-60 days to funds
- EligibilityPolicy ≥ $100K, 2+ years old
What patients with breast cancer should know
Breast cancer can create unexpected expenses — treatment costs, travel, time away from work, and everyday bills can place real financial pressure on families. An eligible life insurance policy may be a valuable source of funds during and after treatment.
A viatical or life settlement may let you access the value of an existing policy while you’re living, with funds commonly used for treatment, household bills, travel and lodging, and family support. Qualifying cases may receive proceeds that are generally tax-free at the federal level under IRS §101(g).
How payout ranges work
On a $500,000 policy, a patient with breast cancer might receive between 40 and 70% of the face value, depending on stage, treatment trajectory, age, policy type, and carrier. That’s between $200,000 and $350,000 in cash, often delivered in 30-60 days from acceptance. Most patients receive substantially more than the policy’s cash surrender value.
What we’d recommend asking
- What’s the difference between a life settlement and a viatical settlement for my diagnosis?
- How will this affect my Medicaid eligibility?
- What documentation does the buyer need from my oncologist?
- Is there a rescission window if I change my mind?
- Are there better alternatives (policy loan, accelerated death benefit rider)?
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