Selling a life insurance policy with melanoma
Disease progression can significantly affect eligibility for a viatical or life settlement.
At a glance
- Typical payoutVaries by case
- Best fitAdvanced stages qualify higher
- Tax treatmentOften tax-free under §101(g)
- Timeline30-60 days to funds
- EligibilityPolicy ≥ $100K, 2+ years old
What patients with melanoma should know
Melanoma outcomes vary widely. Early-stage melanoma often has excellent outcomes, while advanced melanoma can behave very differently — so eligibility is based on the individual case rather than the diagnosis alone.
When melanoma has progressed and you’re facing expensive treatment options, a viatical settlement may let you access the value of an existing policy while living. Advanced cases certified by a physician may qualify under IRS §101(g) for proceeds that are generally tax-free at the federal level.
How payout ranges work
Because melanoma outcomes vary so widely, offers are highly individual — there’s no single percentage that fits every case. The amount depends on diagnosis, stage, prognosis, age, policy type, and carrier. A free, licensed review gives you a specific range, and patients who qualify typically receive substantially more than the policy’s cash surrender value, often delivered within 30-60 days of acceptance.
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)?
Related resources
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