Common questions, answered honestly
Common questions about life and viatical settlements for cancer patients. Reviewed by licensed specialists. Updated 2026.
How much is my life insurance policy worth if I have cancer?
Cancer patients typically receive 30-60% of policy face value. For terminal diagnoses qualifying under IRS §101(g), offers reach 50-80%. On a $500,000 policy, that’s $150,000-$400,000 in cash, often tax-free.
Is the cash from a viatical settlement taxable?
For cancer patients certified by a licensed physician as terminally or chronically ill, proceeds are excluded from federal income tax under IRS §101(g). Most states follow federal treatment.
Will a life settlement affect my Medicaid or SSI?
It can. Medicaid and SSI are means-tested with strict asset limits. A lump-sum settlement may push you over. Specialized trusts can preserve eligibility but must be set up before proceeds arrive.
How long does the process take?
Eligibility check: 30 seconds. Free valuation with written offers: 2-4 weeks. From offer acceptance to funds: 30-60 days. Viatical cases typically close faster than standard life settlements.
What if my policy is a term policy?
Many term policies are eligible if they have a conversion option. We’ll check this during the eligibility review. Group/employer policies often qualify too.
Is there any cost to find out?
No. Eligibility checks, valuations, and offers are free and carry no obligation. You only commit if you accept a written offer.
Do I need to upload medical records up front?
No. The 30-second eligibility check requires no records. If you proceed to a written estimate, we request records (with your authorization) directly from your providers.
Who actually buys my policy?
State-licensed institutional buyers, typically pension funds, large family offices, or specialty investment funds. Buyers are vetted, licensed, and bonded under state law.
Can I change my mind after signing?
Yes. Every state requires a rescission period, typically 15 to 60 days after signing, during which you can cancel without penalty.
What happens to my coverage if I don’t sell?
Nothing. The eligibility check has no effect on your policy. You can walk away at any point with no impact to your existing coverage.
Will my family find out?
Only if you tell them. The process is confidential and HIPAA-compliant. We strongly encourage looping in family, most patients want a spouse or adult child involved, but it’s your decision.
What if I have a small policy?
Policies under $100,000 face value generally don’t qualify for a life settlement, though some exceptions exist. For smaller policies, we can suggest alternatives like accelerated death benefit riders or policy loans.
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