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Accelerated death benefit on life insurance policy

tko683
Posts: 257
Joined: Aug 2011

Hi everyone, My husband was diagnosed stage 4 rectal cancer last June. He has been working but has gotten to the point that he may have to go on LTD. Since this will create a financial hardship we wondered if we could get some of his life insurance money now. Has anyone does this? When I read the policy is just says that you are eligible to apply for accelerated death benefit if your physician says that you are expected to die within 12 months and that you have a life threatening illness. I don't know how stage 4 cancer applies to this and just wondered if anyone has had any success with getting this acclerated death benefit. Any comments for advice is appreciated. Best wishes to you all. Teri

Lovekitties's picture
Lovekitties
Posts: 2902
Joined: Jan 2010

Your best bet is to talk with your insurance agent/company. You should also talk with your husband's doctor. He would have to provide info on the life expectancy clause, and he might not see the 12 month limit as reality.

There are folks who survive for a long time after a stage 4 diagnosis.

You might want to check with your local American Cancer Society for financial assistance options.

Marie who loves kitties

thxmiker's picture
thxmiker
Posts: 1204
Joined: Oct 2010

I would read your policy or ask your agent if there is a viatical clause in the policy.

The Agent works for the insurance company and does not have your interest in mind. It is a called a viatical settlement. There are groups that specialize in this type of investment. Yes, it is an investment. We do not have warranty labels on us, and there is no assurance that one will live 24 months vs 12 months. You may have a viatical clause in your policy. If there is not, there are plenty of private investors that will help you. I have a friend with stage 4 colon cancer. She has made it 7 years so far. She asked her Onc, how many of your patients with stage 4 have made it this long. He told you are the first. One never knows...

Best Always, mike

thxmiker's picture
thxmiker
Posts: 1204
Joined: Oct 2010

Just saw this article on the WSJ. http://online.wsj.com/article/SB10001424052702304331204577353831460351586.html?mod=googlenews_wsj

There are positive companies that do this. One will need to do a little research.

Best Always, mike

tko683
Posts: 257
Joined: Aug 2011

the life insurance that we have is a term policy purchased via payroll deduction through my husband's employer. We do not have any other policy and most likely will never be able to purchase one at this point since we have both had cancer. I will check out that article Mike, thanks!

joemetz's picture
joemetz
Posts: 493
Joined: Nov 2011

greetings...

Not sure how big the life insurance policy is, and not sure if it matters to outside investors... but i had met with my life insurance sales guy and discussed the possibilities of "selling the policy" to outisde investors. (much like that WSJ article explianed.)

my life insurance guy says there are specific companies or investors who will buy the policy, make the premium payments and give you money for the policy. It would be a portion of the total death benefit. Not sure if you can have the conversation with the sales rep or not, but it's worth a shot.... if you're faced with debt that is hard to deal with.

hopefully you get the answers you are looking for.
a phone call to the American Cancer Society and meeting with social workers on the finance side of this battle is also a very good idea.

don't be affraid to ASK and Complain!

you're in my thoughts as you face these decisions.

my best
joe

tommycat's picture
tommycat
Posts: 790
Joined: Aug 2011

Here in California there are companies that advertise that they will buy your life insurance plan from you. From what I understand they prey on desperate people as they give you a pathetic fraction of what's it worth. But it is cold, hard AVAILABLE cash so...they stay in business.
Guess what I'm saying is be careful in your research and subsequent decision.

Nana b's picture
Nana b
Posts: 2777
Joined: May 2009

You would have to pay it back if he didn't pass. Stage 4 cancer is not what it used to be, a death sentence in less then 12 months.

tko683
Posts: 257
Joined: Aug 2011

Thanks for the information. We are still exploring our options. I have a feeling that it is not going to be approved because like everyone is saying stage 4 is no longer a death sentence but according to our oncology, the median life expectancy for stage 4 is now 22 months from time of diagnosis. It has been 10 months for my husband so far. Very confusing and frustrating trying to get healthy and deal with the financial nightmares to go along with the health struggles.....feels like we are just sinking deeper down into something not very good....ok...enough of the whining for today! Best wishes to you all!

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