A cancer diagnosis is more than a medical challenge—it’s a financial reckoning. The costs can be staggering: $10,000 for a single round of chemotherapy, $2,500 per month for medications, and thousands more for hospital stays, specialists, and tests. Even with insurance, these bills pile up fast, leaving many families making impossible choices between paying for treatment and staying afloat financially.
No one should have to face financial ruin on top of fighting cancer. If you have a life insurance policy, it might be more than just a safety net for your loved ones after you’re gone—it can be a lifeline right now. Whether it’s tapping into living benefits, taking a policy loan, or considering a viatical settlement, there are ways to access the funds you need today.
Let’s look at your options, how to unlock the value in your policy, and what to keep in mind so you can focus on your health without the constant worry of mounting bills.
Breaking Down the Costs of Cancer Treatment
Cancer treatment costs can be staggering, even with insurance. Here’s a breakdown of typical expenses that individuals and families face during care:
- Chemotherapy: $10,000 to $12,000 per month for newer treatments. (Source: American Cancer Society, 2023)
- Radiation Therapy: $9,000 to $50,000 for a full course, depending on type and duration. (Source: National Cancer Institute, 2023)
- Surgery: $14,000 to $56,000 for tumor removal or related procedures. (Source: American Society of Clinical Oncology, 2023)
- Hospital Stays: $10,000 to $15,000 per stay, with many patients requiring multiple admissions. (Source: Healthcare Cost and Utilization Project, 2023)
- Medications: $1,000 to $4,000 per month for oral chemotherapy and other drugs, with some specialized treatments exceeding $10,000 monthly. (Source: AARP, 2023)
- Supportive Care: $2,000 to $5,000 monthly for blood tests, imaging, follow-ups, and pain management. (Source: American Cancer Society, 2023)
The Financial Reality
The National Cancer Institute reports that the average cancer patient incurs $150,000 in total treatment costs over the course of care. Even with insurance, out-of-pocket expenses often reach $20,000 to $30,000 annually.
These numbers make it clear why exploring financial options, including life insurance, is essential to avoid overwhelming debt during treatment.
Understanding Life Insurance and Cancer
What is a life insurance policy?
A life insurance policy is an agreement between you and an insurance provider that offers a death benefit to your beneficiaries in exchange for life insurance premiums. The purpose of a life insurance plan is to provide financial security to your loved ones, ensuring they have financial support when you pass away.
There are different types of life insurance coverage, including:
- Term life insurance – Provides coverage for a certain period (e.g., 10, 20, or 30 years). If you pass away during the term, your beneficiaries receive the full death benefit.
- Whole life insurance – A permanent policy that remains in effect for your entire lifetime, as long as premiums are paid. This type of policy includes a cash value component that can be accessed while you’re still alive.
- Guaranteed issue life insurance – A type of life insurance policy available without a medical exam, often used by individuals with serious health issues or a pre-existing condition.
Does life insurance cover cancer?
Yes, most life insurance policies cover cancer as long as the policy was purchased before the cancer diagnosis. However, coverage details can vary:
- If you have an existing life insurance policy, your beneficiaries will likely receive the full death benefit in the event of your passing.
- Some traditional life insurance policies have exclusions for pre-existing conditions, so it’s important to review the terms of your policy.
- If you purchased a guaranteed issue life insurance policy, there may be a waiting period before the death benefit is fully available.
If you’re unsure about your life insurance eligibility or how your policy handles a cancer diagnosis, reviewing your policy details or speaking with your insurance provider can help clarify your options.
Can You Get Life Insurance After a Cancer Diagnosis?
Is it possible to get life insurance after a cancer diagnosis?
Yes, but obtaining life insurance after a cancer diagnosis can be more challenging. Insurance companies assess applicants based on their medical history, cancer stage, treatment plan, and overall health factors. If you’ve been recently diagnosed or are undergoing treatment, you may face higher premiums or coverage limitations.
However, some life insurance options are available to cancer patients:
- Guaranteed issue life insurance – No medical exam required, but may have a waiting period before full benefits apply.
- Simplified issue life insurance – Requires answering basic health questions but does not require a medical exam.
- Final expense insurance – A smaller policy designed to help with funeral costs and medical bills.
What factors affect life insurance eligibility for cancer patients?
Insurance providers evaluate several factors before approving a policy:
- Cancer type and stage – Early-stage cancers may have better life insurance eligibility than advanced-stage cancers.
- Treatment status – If you are undergoing treatment, insurers may delay approval. Many require a remission period before offering traditional life insurance policies.
- Medical history – A history of cancer recurrence or other pre-existing conditions (such as high blood pressure) can affect approval.
- Time since last treatment – Many insurers require patients to be cancer-free for a certain period before offering coverage.
What are the best life insurance options for cancer survivors?
If you are a cancer survivor, your life insurance options may improve over time. Many insurance companies offer better rates if you’ve been in remission for several years. Some policies to consider include:
- Traditional life insurance – Available to cancer survivors who meet an insurer’s medical history and health status requirements.
- Group life insurance – Often available through employers, with fewer health factors affecting eligibility.
- Term life insurance – May be an option if you’ve been in remission for an extended period.
- Whole life insurance – A whole life insurance policy with a cash value component that builds over time.
How Can You Use Life Insurance to Pay for Cancer Treatment?
Can you access your life insurance policy while still alive?
Yes, many life insurance policies offer ways to access funds before the death benefit is paid out. This can be important for cancer patients facing high medical bills, treatment costs, and daily expenses. If you have an existing life insurance policy, there are a few ways you may be able to use it:
What is the cash value of a life insurance policy?
If you have a whole life insurance policy, it includes a cash value component that grows over time. You may be able to:
- Withdraw funds from the cash value – This can provide immediate financial relief, but it may reduce the full death benefit paid to your beneficiaries.
- Take out a life insurance loan – Borrowing against the cash value of your life insurance policy allows you to access funds without surrendering the policy. However, unpaid loans may reduce the payout your loved ones receive.
What if you don’t have cash value or riders on your policy?
If you don’t have a whole life insurance policy or a life insurance rider that allows early access to funds, you still have options. One of the most effective solutions for cancer patients facing financial hardship is a viatical settlement- selling your life insurance policy for a lump sum of cash to use for medical bills, cancer treatment, or daily expenses.
What Is a Viatical Settlement and How Can It Help?
How does a viatical settlement work?
A viatical settlement allows you to sell your life insurance policy to a third party in exchange for a lump sum payment. Instead of waiting for the death benefit to go to beneficiaries, you can use the money now for cancer treatment, medical bills, or everyday expenses.
Unlike taking a life insurance loan or withdrawing from cash value, a viatical settlement provides immediate financial relief with no repayment required.
Why should cancer patients consider a viatical settlement?
- Immediate cash – Funds can be used however you need, from medical costs to daily living expenses.
- No restrictions – Unlike critical illness riders, there are no limitations on how the money can be spent.
- Higher payouts than cash value withdrawals – Viatical settlements often provide more than you’d get from borrowing against your life insurance policy.
Who qualifies for a viatical settlement?
- You must have a life insurance policy that is at least two years old.
- A life threatening illness diagnosis is required.
- Your life policy must be $150,000 or more.
How to Get Started with a Viatical Settlement
If you’re struggling with the financial hardship of cancer treatment and wondering how to use your life insurance policy to ease the costs, a viatical settlement could be the solution. Selling your existing life insurance policy can provide immediate financial relief, giving you the freedom to focus on your health and time with loved ones.
At American Life Fund, we specialize in helping cancer patients and those with serious illnesses unlock the value of their life insurance coverage. Our team can guide you through the process, making sure that you receive the highest possible payout for your policy.
Call us today at 877-261-0632 or see if you qualify here.
