How to Pay for Terminal Care Costs From Life Insurance Policies

If a loved one has a terminal illness, you might want to help him or her explore the possibility of getting an advance on life insurance to pay for medical costs.

Instructions

Difficulty: Moderately challenging

Contact the Insurance Company

1. Find out if the terminally ill patient has an in-force life insurance policy.
2. Write down the contract number of the policy.
3. Call the policy-owner services division of the life insurance company at the home office.
4. Explain the situation and inquire about how the insured might go about applying for an advance on the death benefit.
5. Write down all requirements and ask for any forms to be sent to the owner of the policy.
6. Be sure to get the name and direct phone numbers of the people you speak with at the insurance company so you'll know whom to contact if you need help assisting the insured or the insured's family.

Don't Give Up

7. Ask for a supervisor or customer relations specialist if the first person you speak to tells you that such an arrangement is not a policy feature or benefit.
8. Keep climbing the corporate ladder of the insurance company until you reach someone who can help you.
9. Be persistent.
10. Document each conversation carefully.

Pursue a Viatical Settlement

11. Call an insurance-buying group that will purchase the insured's policy if the insurance company won't help you.

Tips & Warnings

• When dealing with the insurance company, have the attitude that "everything is negotiable."
• Be positive and courteous and express appreciation for any consideration you are given.
• Most insurance companies will require a medical statement from the attending physician indicating a life expectancy of six months or less.
• Advancing a death benefit for medical costs is a relatively new accommodation, so don't be surprised if insurance company personnel at the lower levels don't know what you are talking about.
• Stay calm. Avoid becoming frustrated by corporate bureaucracy.
• If you are not the owner of the policy, getting help with this matter may be difficult.
• Go to "Viatical Settlements" in the Related Sites.
• Don't enter into any arrangements or recommend any viatical representatives to friends or family without doing thorough research.
• Never give out names, addresses or phone numbers to viatical representatives until you have verified their professional standing.