Can Term Life Insurance Have Cash Value?

When an unexpected financial challenge hits, many questions may abound: Should you tap into your savings? How can you access cash without getting into too much debt? Can you borrow from your life insurance? That last question is a complex one, as there are many types of life insurance, and different ways to use your policies. Many people view life insurance as a long-term solution, often just to be passed down to future generations. However, there is the potential for life insurance policies to have cash value that can be of vital assistance in a financial pinch, like those often faced by cancer patients. Before delving into this topic, policyholders need to first determine the type of coverage they have. Whole, or permanent, policies protect the holder for the entirety of his or her life, and accumulate cash value that can be borrowed against. The more you pay into the policy throughout your life, the more cash value it ultimately has. Term insurance, on the other hand, is designed to only function for a set amount of time; unlike whole coverage, term does not accumulate cash value. If the set timeframe expires, the policyholder does not have access to any of the premiums he or she paid throughout its duration. However, there are some exceptions to this structure, such as Life Credit’s Living Benefit Loans. Life Credit pays up to half of a person’s death benefit on his or her life insurance policy, regardless of the type of policy. Even if you are a term policyholder, you can borrow from your life insurance, if it has a value of...

Can I use my Annuity or Life Insurance Living Benefit to Pay for Cancer Treatment?

If you have been diagnosed with cancer or another serious, terminal medical crisis then you know preparing for your financial future involves many challenges. You may have thought of creative ways to spend your savings, taken a closer look at your annuities and investments, and even explored cashing out your life insurance policy. But, can you cash out a living benefit option on annuities and receive immediate cash assistance for cancer treatment and at-home medical care? Or, do you qualify for a cancer loan using your death benefit on your life insurance plan? You may be considering a number of add-ons and riders in your life insurance policy or annuities. Can I get Cash for Cancer Treatment Using my Annuity’s Living Benefit Option?  An annuity is a collection of investments, which can often be diversified to maximize the returns. As part of the portfolio, an annuitant may be able to opt for a living benefit, meaning he or she can draw cash from the value of the annuity if needed. If you are considering borrowing from your annuities and use it as financial assistance for cancer treatments or care, there are a few things to consider: Value of upfront investments – A policy holder must invest a certain amount in order to guarantee he or she will receive a set living benefit, no matter how the investments perform, which may require a significant amount up front. Costly Fees – Most annuities charge fees for choosing the living benefit feature, which may be paid on a yearly, quarterly or monthly basis, depending on the agreement. Incremental Financial Payout – Living...

Can you Take Out a Loan on a Term Life Insurance Policy as a Cancer Patient?

When it comes to life’s most expensive moments — college, a wedding, buying a house — many people turn to loans. Loans can also be used for not-so-happy moments, such as a medical crisis like cancer. With treatments, medications and lifestyle changes like lost wages, cancer financial assistance is vital for many patients, some of whom consider borrowing against a life insurance policy for some quick cash. There are a number of options for life insurance loans, which depend on the patient’s particular policy, as well as the details of his or her prognosis. A Different Approach to Borrowing Against Term Life Insurance Some life insurance companies will allow clients to draw on the cash value of their policy as a form of financial aid for cancer patients. The patient will be responsible for paying the loan back to the company, often at an interest rate of 5-9 percent. However, that option is only available for those with a permanent policy, or one that covers the policy holder for life, while term holders, those whose policies are designed for a set period of time, are ineligible. Even though term holders may have paid a significant amount into their policies, they’re not able to access that money in an emergency. Life Credit Company takes a different approach to life insurance loans. allows policy holders to draw against their death benefit, regardless of the type of policy, including term and even group plans. Those facing cancer or other life-threatening illnesses who have a death benefit valued at a minimum of $75,000 are eligible. Policy holders can receive up to half of...