3 Ways to Borrow Money from Your Life Insurance Policy

Can you borrow money from life insurance?  Yes you can, and there are 3 popular choices to consider. There’s the policy loan, an option called an “accelerated death benefit” and a living benefit loan. Let’s take a look at each of these.

Policy Loan

Taking out a policy loan is generally straightforward: you borrow against your life insurance policy for its cash surrender value. However, there can be problems such as higher premium payments. Also, most policies don’t have a cash surrender value, making this option unavailable to many.

Accelerated Death Benefit

The second option, the accelerated death benefit, works if you want to borrow money from your life insurance policy. In order to qualify, you must be terminally ill. How that is defined can vary according to your policy, but it is generally a 6  to 24 month life expectancy. A letter from your doctor confirming this is required.

Living Benefit Loan

A living benefit loan can also be a great solution. If you have been diagnosed with a disease that is life-limiting, such as cancer, you can receive a Living Benefit Loan for up to half of your death benefit. For example, if you have $100,000 in coverage, we can loan you up to $50,000, secured only by that life insurance policy. You keep your insurance and your beneficiaries remain as they were listed before the loan.

The Next Step

If you want to borrow money from your life insurance policy, understanding your options is the first step. The next step is to speak with an experienced counselor who can guide you through the process to borrow against life insurance.

If you think a Living Benefit Loan might be a good option for you, Life Credit Company is here to help. Please give us a call at 1-888-274-1777.

Life Credit Company

We are a licensed consumer lender that is dedicated to providing financial assistance for patients who are facing serious illness. With a Living Benefit Loan, from Life Credit Company, you can receive up to 50% of your life insurance policy’s death benefit today. Whether you need to catch up on medical bills, consolidate debt or take your family on a dream vacation, this is your money to spend without restrictions. If you have at least $75,000 of life insurance and have been diagnosed with cancer or other serious medical condition, you may qualify for a loan. Contact us today to speak with a professional counselor who is standing by to assist you.

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  1. I have systemic lupus and I was wondering if that would qualify?

    • Please call us at 888-274-1777 to speak to one of our counselors as they would be able to determine if your qualify in just a few minutes.

  2. My wife has pancreatic cancer. She has a active current policy for 250000 with AIG. After submitting a ton of documents. We were able to draw half leaving 125000. I have full power of attorney. Can you belp?

    • Please contact as us at 1-888-274-1777. We should be able to assist you.


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