Policy Value Calculator
Health StatusAverage Price
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Terminal Illness
Disclaimer: This is not an offer or bid. This is average pricing for discussion purposes only. Speak with your Abacus representative for additional insight. There have been many assumptions including but not limited to premium amounts and life expectancy that may or may not be accurate to your specific case. An actual underwritten life settlement offer may be much higher or lower. Full due diligence must be applied to any policy, insured, and seller to determine if a life insurance policy is sellable.

Paying for Medical Care

Selling your life insurance policy to pay for medical needs is specifically for individuals suffering from a terminal illness. The transaction can typically be done tax-free, so long as the insured meets certain criteria as stated by a medical professional.

How Does This Option Differ From Normal Life Insurance Purchases?

At its core, it is essentially the same as other life options; with the major caveat being the insured is typically suffering from a terminal illness and has a life expectancy of less than two years.

There are some other slight variations between the two. Below, you can see a comparison of the types.


  • The insured is terminally/chronically ill.
  • The proceeds typically range from 50% to 80% of the death benefit.
  • The IRS allows proceeds to be received as a tax-free gain so long as the insured meets certain criteria as stated by a medical professional.


  • The insured is typically a senior in their late 70s.
  • The proceeds are usually around 10% to 80% of the death benefit, depending on life expectancy.
  • The funds are normally subject to taxation unless they meet IRS guidelines.


Over the past decade, the market has become incredibly well regulated. The entire insurance market is regulated on a state-by-state basis instead of nationally. Therefore, the responsibility falls on each state’s government to make sure that companies are behaving ethically. The majority of states do require specific licensing and practice strict oversight to ensure customer safety. Here at Abacus, we are proud to share that we are licensed for life and viatical settlements in many different states.

Whoever you choose to work with, you should make sure they follow the correct guidelines; there are still some companies in the industry who do not operate under the appropriate licensure.

Meet Diane

Diane was diagnosed with stage IV cancer. Realizing the immediate need for financial assistance to pay for treatment, Abacus was able to close the case in exactly 30 days. Diane received a lump sum of $201,000 and was able to secure important medical care right away.