Understanding Life Settlements for Neurodegenerative Diseases

Understanding life settlements for neurodegenerative diseases is crucial for patients and families facing the emotional and financial burden of these progressive conditions. Neurodegenerative diseases such as Amyotrophic Lateral Sclerosis (ALS), Parkinson’s disease, Huntington’s disease, Alzheimer’s disease, and multiple system atrophy are marked by the gradual loss of nerve cell function, leading to cognitive and physical decline over time. These diseases often require long-term care, specialized medical equipment, and assistance with daily living, creating financial stress for families.

A life settlement offers a potential solution. It involves selling an existing life insurance policy to a third-party buyer for a lump-sum payment that is higher than the policy’s cash surrender value but less than the death benefit. Life settlements can provide immediate funds to cover mounting medical and care-related expenses, helping ease the financial strain.

How Neurodegenerative Diseases Affect Life Settlement Eligibility

Life settlements are generally available to individuals who meet certain criteria:

• Age 65 or older, or younger with a significant qualifying health condition.
• A life insurance policy with a face value of $100,000 or more.
• A life expectancy typically between 2 to 10 years, which can result from a progressive disease like ALS or Huntingtons disease.  Shorter life expectancies can qualify for a viatical settlement which also provides a lump sum cash payment but is designed for terminally ill patients.

Neurodegenerative diseases often lead to functional decline, including loss of mobility, cognitive impairment, and progressive health deterioration. As the disease advances and life expectancy shortens, individuals may become eligible for higher life settlement offers.

For example:

• ALS (Lou Gehrig’s disease) has an average life expectancy of 2 to 5 years post-diagnosis, often qualifying patients for significant offers.
• Huntington’s disease, with a gradual progression but inevitable decline, may lead to eligibility in the mid to later stages.
• Advanced Parkinsons disease can reduce life expectancy, particularly with complications like pneumonia or falls.

Case Study: ALS Patient Funding Home Care

Consider the case of John, a 58-year-old diagnosed with ALS. As his mobility declined, his wife could no longer care for him alone. John owned a $250,000 universal life insurance policy. After consulting a life settlement company, he sold the policy for $85,000. These funds were used to modify their home for wheelchair access and hire professional caregivers, dramatically improving his quality of life during his remaining years.

Key Considerations for Patients and Families

When considering a life settlement, patients with neurodegenerative diseases should:

• Review the policy type: Term policies nearing expiration may still be eligible, especially if convertible; permanent policies (whole or universal life) are often more valuable.
• Get a professional appraisal: An experienced life settlement company can assist you with learning the market value of a policy and estimate potential settlement offers.
• Understand the timing: Early-stage neurodegenerative diseases may not qualify, but advancing symptoms and medical documentation can support eligibility.
• Weigh financial implications: Selling a policy provides immediate funds but forfeits the death benefit for beneficiaries as the new owner takes over ownership and beneficiary rights to the policy.

Using Life Settlement Funds for Neurodegenerative Diseases

The proceeds from a life settlement can be used for:

• In-home or residential care: Covering the cost of caregivers, nurses, and assisted living.
• Medical treatments and equipment: Funding medications, therapies, mobility aids, and specialized technology.
• Home modifications: Installing ramps, lifts, and accessible bathroom facilities.
• Caregiver support: Providing financial stability for family members assisting with care.
• Quality of life improvements: Enabling travel, counseling, or other supportive services.

Understanding life settlements for neurodegenerative diseases empowers patients and families to make informed financial decisions during a difficult time. By unlocking the hidden value of a life insurance policy, a life settlement can provide essential funds to support care, improve quality of life, and ease financial burdens. As neurodegenerative diseases progress, exploring a life settlement may offer a critical financial lifeline when it’s needed most.

To learn if you qualify and obtain a no-obligation policy appraisal, please give us a call today at 800-727-7654.