A cancer diagnosis brings not only emotional and physical challenges but also significant financial stress. From medical bills to lost income, the costs of cancer treatment can quickly put pressure on patients and their families. In fact, many cancer patients face “financial toxicity,” a term used to describe the economic strain caused by treatment-related expenses.
Proactive financial planning can help ease this challenge. By managing finances early, leveraging resources like health insurance, and exploring options such as pro bono financial planners or support programs like Family Reach, patients and caregivers can focus on what truly matters, health and family. Here we will provide actionable steps to overcome these challenges and improve your financial health during treatment.
What Are the Financial Challenges of Cancer?
Cancer patients face a wide range of financial challenges, from rising medical bills to unexpected costs that strain their financial health. The burden often extends beyond treatment, affecting patients, caregivers, and families alike.
How Much Do Medical Costs Add Up?
Medical expenses for cancer treatment can quickly deplete savings, even with health insurance. For example, a single round of chemotherapy can cost anywhere from $1,000 to $12,000, and specialized treatments like immunotherapy may exceed $100,000 annually. These costs include hospital stays, medications, and follow-up care.
What Are the Hidden Costs of Cancer?
The financial impact isn’t limited to medical bills. Patients and caregivers often encounter additional expenses, including:
- Transportation: Frequent trips to treatment centers increase costs for gas, parking, or rideshares.
- Lost Income: Patients and caregivers may need to reduce work hours or take unpaid leave, creating gaps in household finances.
- Nutritional Needs: Specialized diets during treatment often lead to higher grocery or meal delivery bills.
What Is Financial Toxicity?
Financial toxicity refers to the economic stress caused by treatment-related expenses. Research shows that 42% of cancer patients exhaust their entire savings within two years of diagnosis. Without proactive financial planning, families risk falling into debt and jeopardizing their long-term financial stability.
How Can Cancer Patients Take Control of Their Finances?
Cancer patients can take control of their finances by creating a proactive plan to manage costs and access available resources. Taking these steps early helps patients, caregivers, and families reduce stress and focus on treatment.
What Is the First Step in Managing Finances?
The first step is to assess your financial situation. Start by gathering all financial documents, including savings accounts, insurance policies, and retirement accounts. Understanding your current resources provides clarity on how to allocate funds effectively during treatment.
Use budget tracking tools or apps to organize monthly expenses. Include both predictable costs, like medical bills, and indirect expenses, such as transportation and meal delivery.
What Resources Are Available for Cancer Patients?
American Life Fund has created some handy resources to make your lives easier. See what kind of financial assistance you can get for the following cancer diagnosis:
- Bile Duct Cancer
- Bladder Cancer
- Brain Cancer
- Breast Cancer
- Endometrial Cancer
- Esophageal Cancer
- Lung Cancer
- Mesothelioma
- Ovarian Cancer
There are many programs designed to ease the financial burden of cancer:
- Pro Bono Financial Planners: Organizations like the Financial Planning Association offer pro bono financial planning services for cancer patients.
- Nonprofit Support: Programs like Family Reach connect patients with resources to help cover medical and living expenses.
- Social Security Disability Benefits: If eligible, these benefits can provide financial support for patients unable to work during treatment.
Should You Consult Financial Professionals?
Yes, consulting professionals can provide necessary support for managing finances. A certified financial planner can help patients prioritize expenses, process insurance claims, and plan for long-term care. Additionally, a CPA can advise on tax-deductible medical expenses, making sure that patients maximize their financial relief.
How Can Viatical Settlements Help Cancer Patients?
Viatical settlements provide cancer patients with immediate financial support by allowing them to sell their life insurance policies for a lump sum of cash. This option can ease the stress of treatment and help patients and families focus on care and recovery.
What Is a Viatical Settlement?
A viatical settlement involves selling a life insurance policy to a third party for an amount greater than the policy’s cash surrender value but less than the death benefit. The buyer of the life policy assumes responsibility for paying premiums and receives the policy’s payout after the policyholder’s passing.
Why Consider a Viatical Settlement?
For cancer patients, viatical settlements offer important benefits:
- Immediate Cash Flow: Funds can be used to pay medical bills, manage daily expenses, or provide for caregivers and families.
- Tax-Free Access: Under the Health Insurance Portability and Accountability Act (HIPAA), viatical settlements are typically tax-free for patients with a qualifying terminal illness.
- Flexible Use of Funds: Unlike some assistance programs, viatical settlement proceeds can be used for any purpose, from covering transportation costs to funding long-term care.
When Is a Viatical Settlement the Right Choice?
A viatical settlement may be a good option if you:
- Face high out-of-pocket costs for cancer treatment or related expenses.
- Have a life insurance policy you no longer need to leave as a death benefit for beneficiaries.
- Want to avoid dipping into retirement accounts or other savings during treatment.
Taking Control of Your Finances During Cancer Treatment
Managing finances during cancer treatment can be daunting, but with the right resources, it is possible to regain control. By creating a clear financial plan, leveraging support networks, and exploring options like viatical settlements, patients and caregivers can reduce stress and focus on what matters.
At American Life Fund, we understand the financial challenges cancer patients face. Viatical settlements provide an opportunity to access immediate, tax-free funds by selling your life insurance policy, offering relief for medical bills, daily expenses, or long-term care. Our team is here to guide you through every step of the process, helping you make informed financial decisions tailored to your needs.
Take the first step toward financial relief today. Call us at 877-261-0632 to get started. Let us help you through this difficult time with the support you deserve.
