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How a Terminal Illness Takes a Toll on Your Finances

We know why you’re reading this blog. With the worldwide coronavirus pandemic, everyone is haunted by the same question: what happens next? It doesn’t help that news sources only add to the general paranoia by constantly talking about older people’s vulnerability to the virus.

While pandemics are temporary, the feat of  terminal illness for many is not. “What if I have an illness that’s in its terminal stages”?

Terminal illnesses are debilitating; they make you dependent on another person for even the simplest of daily chores. Then there’s the psychological aspect: terminal illnesses have been known to take a massive toll on people’s mental health, leading to conditions such as depression, anxiety, and more.

There is, however, one more aspect to terminal conditions, and that is…

The Financial Cost of a Terminal Illness

Terminal illnesses such as advanced stage cancer, lung disease, advanced stage heart disease, dementia, degenerative disorders, movement disorders, etc. cause great physical and emotional pain. Unfortunately they often cause financial pain as well.

For instance, the costs associated with cancer treatment (of any variety) are extremely high, and research shows that these costs are expected to increase in the future. The cost of treating lung disease, similarly, ranges between $3,000 and $7,000; whereas $1 billion are spent every day on treating heart disease.

This does not include the cost of hiring help, which becomes a necessity when one is suffering from a terminal illness. In 2019, senior care costs ranged between $17 to $22 an hour. Additionally, there is specialized medical equipment needed (such as ventilators and wheelchairs), which add to the burden. Some illnesses, such as movement disorders, make mobility difficult, and require lifestyle adjustments such as the addition of a home elevator or ramps.

The Healthcare System Doesn’t Help

This doesn’t come as a surprise to anyone—healthcare in the U.S. is expensive, even with health insurance. Additionally, there were excessive costs added to the healthcare system in 2019, which only made it costlier—if that can be imagined.

In fact, experts have weighed in on the poor management of the coronavirus pandemic in the U.S. and have blamed the healthcare system.

None of this is great news. And for older people near retirement and for those suffering from terminal illnesses, it can seem like it spells doom.

Taking out your IRA funds or 401Ks isn’t an option everyone can afford, as many people are saving them for their post-retirement days.

No Options?

In such times, it’s natural to feel helpless. But if you have a life insurance policy in place, you may be able to sell it to a willing buyer. As a policy owner, you will receive payment in cash—which you can use now to fend off any financial troubles caused by your terminal illness.

You can sell your life insurance policy if you qualify for it. The conditions (which are subject to change) are generally 70 years of age (or older), having a life insurance policy whose face value is $100,000 or greater, and having a policy that was issued at least two years ago. If you want to dig deeper, try this free life settlement estimator. This insurance settlement calculator will give you a good idea about how much your policy is worth.

And if you’re still confused, feel free to give us a call at 800-591-2551!