Amyotrophic Lateral Sclerosis and Financial Stability; Real Options Beyond Disability Benefits

When you or a loved one receives a diagnosis of Amyotrophic Lateral Sclerosis (ALS), also known as Lou Gehrig’s Disease, life shifts quickly. You’re managing a serious medical condition, tracking neurological findings, attending a medical team of specialists, and seeking every resource you can. In the midst of that, the question of financial support becomes immediate. Under the Social Security Administration (SSA) system, there is a program called Social Security Disability Insurance (SSDI) that provides disability benefits. 

As of 2025, the CDC’s National ALS Registry estimates there are about 34,290 people living with ALS in the U.S. (projected). That means many younger workers and their family members are navigating life with a diagnosis of ALS while also trying to secure financial stability. The five-month waiting period required for many SSDI claims may apply in traditional cases, but ALS is treated as a Compassionate Allowance condition, making eligibility faster. Still, SSDI benefits alone often fall short of covering rising medical expenses, adaptive equipment, home modifications, and the loss of income.

That’s where a viatical settlement becomes relevant. Converting a life insurance policy into cash can offer faster access to funds, less dependence on the waiting period, and more flexibility in how you use that money. We’re not offering legal or medical advice here but we know what the options look like.

How Social Security Disability Works for ALS Patients

The Social Security Administration (SSA) recognizes amyotrophic lateral sclerosis (ALS) as one of the most serious neurological disorders. When the medical evidence confirms an ALS diagnosis, the SSA automatically flags the case through its Compassionate Allowances initiative. This means ALS applicants bypass the typical review backlog. The agency uses generally accepted methods consistent with clinical practice, including neurological findings, neuroimaging testing, and physician-verified medical records, to confirm eligibility.

The application process for Social Security Disability Insurance (SSDI) begins by documenting employment history, verifying that the disability began after enough work credits were earned. Most workers qualify if they’ve contributed to Social Security through payroll pay deductions. As of 2025, the SSA reports an average SSDI benefit over $1,500 per month, offering vital financial support to those unable to maintain substantial gainful activity due to ALS symptoms.

Unlike most medical conditions, ALS is exempt from the five-month waiting period required for other SSDI applications. Once approved, the disability benefits start immediately, often within weeks, providing ALS patients with much-needed income continuity. After receiving SSDI for 24 months, individuals become eligible for Medicare benefits, which include access to Medicare Advantage Plans (Part C), prescription drugs, and coverage for visits to preferred doctors.

Still, while Medicare disability benefits are an essential safeguard, they rarely meet every cost tied to ALS care. The combined expenses of medication, adaptive technology, and home modification remain high. That’s why many within the ALS community seek supplemental insurance or explore additional resources such as viatical settlements to fill those financial gaps.

What Social Security Disability Doesn’t Cover

Receiving SSDI brings relief, but most families quickly discover it doesn’t reach far enough, unfortunately ALS care costs far more. According to a 2024 article from ALS News Today, a typical household managing ALS faces between $80,000 and $250,000 per year in expenses once the disease progresses. Those costs include:

• Home health or aide support: about $75,000 a year for professional daily help.
• Mobility and adaptive equipment: power wheelchairs, lifts, and speech devices that can add $10,000 to $30,000 each.
• Medication and therapy co-pays: even with Medicare Benefits or Medicare Advantage Plans (Part C), ongoing out-of-pocket costs often reach several hundred dollars each month.
• Home modifications: ramps, widened doors, and accessible bathrooms that frequently exceed $20,000.

On top of the care, take a look at treatment costs for ALS and how to pay for them.

Each of these items is essential, not optional, and together they outpace what social security disability benefits were designed to provide. The Social Security Administration built SSDI to replace income, not to fund intensive medical support. For ALS patients, that difference matters.

This is why many in the ALS community consider additional options, like using a life insurance policy through a viatical settlement to access a lump-sum of cash when it’s needed most. SSDI offers stability; a settlement provides flexibility and control.

How a Viatical Settlement Complements Disability Benefits

For people living with amyotrophic lateral sclerosis (ALS), Social Security Disability Insurance (SSDI) provides steady income, but it rarely meets the true cost of care. A viatical settlement can close that gap by converting a life insurance policy into immediate cash value, money that belongs entirely to the policy owner.

Because ALS is a life threatening illness, the Internal Revenue Service classifies proceeds from a viatical settlement as nontaxable income. That means the funds do not affect SSDI benefits, Medicare, or eligibility for other social security disability benefits. The two are separate programs, serving different needs: SSDI provides monthly stability; a viatical settlement offers financial flexibility when timing matters most.

Consider one example. An ALS applicant with a $200,000 life insurance policy receives up to 70% of the face value in a lump sum cash payment. That allows their medical team to add private therapy sessions, fund home accessibility upgrades, and give family members respite care, all without touching SSDI income.

Read other stories from our customers.

This process is straightforward. Once medical records confirm ALS and the policyholder is found eligible, the policy is sold, and funds are delivered within weeks. The financial support created helps sustain both the patient’s quality of life and their household’s sense of security.

Comparing Timelines — SSDI vs. Viatical Settlement

Step	SSDI (Social Security Disability Insurance)	Viatical Settlement
Application process	Submit through the Social Security Administration (SSA). Review based on medical evidence and work history.	Submit directly with American Life Fund using medical records and life insurance policy details.
Approval time (as of 2025)	Compassionate Allowance for ALS = about 1–3 months before first payment.	1–3 weeks from application to lump-sum payment once eligible.
Type of benefit	Ongoing monthly disability benefits (average ≈ $1,580).	One-time cash value payout (often 50–70 % of policy face value).
Use of funds	Limited by monthly income; covers living basics.	Flexible: home care, medical team costs, family members’ support, or personal needs.
Effect on SSDI	—	None. Classified as non-taxable for a terminal illness; SSDI benefits stay intact.

Both options deliver stability. Social Security Disability builds a foundation. A viatical settlement gives the speed and freedom to make larger decisions sooner.

When Each Option Makes Sense

Social Security Disability Benefits

• Best for long-term income stability.
• Ideal when you still have relevant work history and qualify for SSDI benefits through the Social Security Administration.
• Provides predictable monthly payments to cover essentials like housing, groceries, and utilities.

Viatical Settlement

• Best when you need immediate funds for high-cost care or home adjustments.
• Works well for ALS applicants who want flexibility and control over how their cash value is used.
• Doesn’t interfere with SSDI or Medicare. It’s considered non-taxable for those with a terminal illness.

In simple terms:

• SSDI keeps life steady month to month.
• A viatical settlement gives financial breathing room now.

Together, they create both security and freedom, a balance every ALS household deserves.

See If Your Policy Qualifies

If you’ve been diagnosed with ALS, you may be eligible for a viatical settlement through American Life Fund. Most policies with a minimum face value of $200,000, including Term Life, Whole Life, Universal, FEGLI, and Group Life qualify once verified medical records confirm a serious illness.

A viatical settlement offers the ability to access the cash value of your life insurance policy now, providing immediate financial support while maintaining your Social Security Disability or Medicare benefits. It’s fast, private, and handled with the professionalism and compassion that define American Life Fund.

We’re available 24/7.
Give us a call or send us an email to find out how we can help you today.

📞 (877) 261-0632
📧 info@americanlifefund.com

American Life Fund is an industry-leading viatical settlement company. We’ve helped thousands of individuals get the most money for their life insurance policy, allowing them to focus on what truly matters, their comfort, care, and peace of mind.