Figuring out the best way to use your life insurance when you have cancer is a challenging task that all too many people face. The disease brings with it seemingly insurmountable financial challenges—for treatments to medications to disruptions like the loss of a job—leaving many patients in critical need of quick financial assistance. Life insurance can be a valuable tool to close financial gaps.
However, completely cashing out or selling your policy can seem wasteful after years of investing in the product to help your family in the future. Instead, Life Credit’s Living Benefits Loans are a viable option if you’re considering using your life insurance when you have cancer. The program allows you to borrow against the cash value of your policy—and you get to reap the financial benefits: no more premium payments, no obligation to repay the loan and a guarantee that, upon your passing, your policy’s death benefits cover the loan and any additional benefits will be distributed to your beneficiaries.
Before deciding which option to pursue, make sure to ask your insurance company these three questions:
- Does my policy have any cash value?
If your policy has built cash value, your insurance company may allow you to draw from that for immediate financial support. If so, you may be able to keep your policy active and leave some funds for your beneficiary.
- Does my policy have living benefits?
Regardless of cash value, your policy may have a living benefits option, which could allow you to essentially take an advance on your death benefit. That way, you may be able to take advantage of the longtime investment you made while you’re still alive and, ideally, keep enough funds in the benefit to support your family in the future.
- Do I have an Accelerated Death Benefit Rider?
This add-on provision is available if you’re diagnosed with a terminal illness. In that case, the insurance company will provide you a portion of your death benefit to use as you get your final affairs in order.
These options vary among companies and policies, so if they aren’t viable for your situation, a Living Benefit Loan from Life Credit could help you access the vital financial support you need. Tapping into life insurance when you have cancer is a strategic financial decision, but it’s one that needs to be made after you have explored all of the information and considered the financial needs of yourself and your loved ones.