May 2018 - Life Credit Company

Which is Better: Term Life or Whole Life Insurance?

If you’re considering investing in life insurance, one of your first decisions is likely term insurance vs. whole life insurance. The type of insurance you choose will dictate the level of protection you get, and for how long, so it’s important to understand which policy fits best for your individual situation. What is the Difference Between Term and Whole Life Insurance?   There are a few key differences between term and whole life insurance, including: Length of coverage: Term policies only offer death-benefit coverage for the policyholder for a set number of years, while whole life, instead, extends through the person’s death. Whole life insurance typically provides both a death benefit and a cash savings, where term does not accumulate cash value. Premiums: Because whole life has a longer coverage period, monthly premiums may be higher than those associated with term policies. Living death benefit: Many policies only allow clients to add a rider such as a living death benefit—which enables the person to draw cash from the policy in the event of a terminal illness—to a whole life policy. Life Credit’s Living Benefit Loans, however, allow policyholders to borrow against the death benefit of both term and whole life policies. Term Insurance vs. Whole Life Insurance   So which type of policy is better? It largely depends on a person’s unique situation. Term insurance is often a good fit for younger individuals, who want to protect their families in the event of an unexpected loss, all at a price that doesn’t break the bank. However, when the term finishes, the policyholder will lose protection, which can be a...

What Can You Expect to Spend Out of Pocket When You Have Cancer?

The cost of cancer treatment may be one of the first worries that crosses someone’s mind when he or she receives a cancer diagnosis. Fears over how to pay—and even if they can pay—for quality care shouldn’t be top of mind for those dealing with life-threatening illnesses but, unfortunately, that is a reality for far too many people. Research has consistently found that cancer patients face serious risk to their financial well-being because of their care. It’s difficult to determine the average cost of cancer treatment—as each person’s insurance, diagnosis and treatment is different—but one study found that patients were paying, on average, 11 percent of their income in out-of-pocket treatment costs. Sixteen percent of those surveyed reported significant financial distress, and that was despite 60 percent of those individuals having health insurance. Where exactly does all the money go? What are the out of pocket costs of cancer treatment?   Co-pays: Visiting doctors and specialists on a regular basis can amass a significant number of office co-pays. Treatment: From pill regimens to chemotherapy, many patients are expected to pay at least part of treatment costs out of pocket. Testing: With high-deductible plans so common these days, the routine testing before, during and after cancer treatment can come with a high price tag. Lifestyle changes: Many patients overlook the lost wages that stem from reduced working hours that are often necessary during and after treatment. Transportation: Getting to and from medical appointments can be costly, as patients often have to enroll in transportation services or rely on rideshare options when loved ones aren’t available. The American Cancer Society’s Costs of...

Why Would People Avoid Life Insurance Loans and Credit Programs?

Like with any loan program, borrowing against life insurance can sometimes make people wary, as they worry about taking on more debt. While mounting debt is certainly an issue that can impact some people negatively, loans themselves don’t have to necessarily be risky—and can actually be productive. Particularly when it comes to one’s own investments, such as lending against life insurance policy, being able to draw value on that product to combat other debts is a sensible and practical approach.   If you’re weighing whether to borrow against life insurance, you first need to have life insurance explained in a way that makes sense for your particular situation. Many people anticipate only using the death benefit of their life insurance policy after their death, to help pay for final arrangements and take care of their loved ones. However, if a financial crisis arises, such as a cancer diagnosis, life insurance can be a logical source of income: Policyholders may have paid into the plan for decades and, by drawing on its value, they can address pressing, and often quickly escalating, financial needs to improve their quality of life and possibly even their prognosis.   So what happens when you borrow from life insurance? There are pros and cons of life insurance loans, depending on the program. Like most loans, life insurance loans typically involve interest, so policy holders will have to pay back the debt, along with the added interest, to regain control of the policy.   However, the benefits that life insurance loans—both immediate and long-lasting—bring can far outweigh whatever interest the policy holder incurs. Having the ability...