How does your Life Insurance Cash Value Build?

If you’re considering purchasing life insurance or are exploring ways to maximize the benefits of your policy, you’re likely looking to answer the question, how does life insurance build cash value? A policy’s ability to accumulate cash value over the years can provide a significant benefit to a policyholder, as he or she may be able to tap into these funds in case of emergency or can use them to pass along to heirs. While many nuances that determine a policy’s cash value, there are some standard protocols that most insurance companies follow: Term vs. Permanent: One of the first things you have to determine when looking to answer how does life insurance build cash value is what type of policy do you have? For instance, term life insurance is only applicable for a certain period of time and does not acquire cash value while permanent life insurance does. If you think you may want to take advantage of the cash-value option, you’ll need to explore the best permanent life insurance policy for you. Type of Policy: There are a number of different permanent life insurance policies that build cash value, all in varying ways. Whole life policies lock in a rate of growth, which the company and policyholder agree to and which doesn’t change, while universal policies rely on current interest rates to determine the growth. Another option is variable, in which the funds are invested and cash value grows according to the success of the investments. Premium Payments: Cash value starts to build through the policy holder’s premium payments. Typically, insurance companies divert the payments into three distinct...

How is my Death Benefit Calculated?

A life insurance policy’s death benefit can be a vital resource. In the event of someone’s passing, the funds can be used to cover final expenses, as well as to address income gaps left by the loss. Some people may also opt to draw on the value of the death benefit while they’re alive, such as through Life Credit’s Living Benefits loans, which allow policyholders to borrow against their death benefit to manage medical emergencies such as cancer. Regardless of how you intend to use it, a life insurance death benefit payout can be a significant source of financial assistance, both for policyholders and their heirs. However, it’s important to make educated and informed decisions when you’re enrolling in a policy to ensure the payout will be sufficient. While each policyholder will have individual circumstances — such as varying numbers of dependents or unique health concerns — there are some common ways to determine what your life insurance death benefit payout should be before you finalize a policy. One strategy is to add together the policy holder’s annual income, the cumulative amount that would be lost if he or she died today (presuming he or she would work through average retirement age) and burial costs. Even though this total may seem high, it allows for a worst-case scenario that would enable the person’s family to continue receiving the financial support this person had provided during life if he or she was to pass away at an early age. Once the desired amount of the life insurance death benefit payout is calculated, you can then shop around to find a...

2 Ways to Get Life Insurance for Children with Cancer

When an adult is diagnosed with cancer, the fallout is life-changing; however, when the medical emergency strikes a young person, the impact is often even more overwhelming. Apart from the emotional toll of a child struggling with an illness, parents have to manage new challenges to their work/life balance, learn how to be patient advocates and find the financial support to enable the best treatment possible. Though no one anticipates their children will be diagnosed with cancer, it is important to plan ahead for the worst-case scenario, such as through life insurance for children with cancer. Life insurance can be a vital resource for those who are facing a serious illness. For instance, Life Credit’s Living Benefits Loans allow policyholders to borrow against their death benefit to pay for costs associated with conditions like cancer. There are also ways parents can extend the value of their life insurance to their children. One option is for a parent or guardian to purchase a standalone life insurance policy in the child’s name. Typically, these policies are structured as whole-life policies and build cash value over the years. Many allow policyholders to borrow against the value, which can be a source of help for cancer patients and their families; often, families with young children don’t have significant savings at their disposal, so being able to tap into life insurance for children with cancer can ease many of the financial worries families have so they can focus on helping their child get well. However, parents need to fully research the provisions of such policies, as many require children to be healthy for a...

Deferment for Active Cancer Treatment Act

Student loan debt affects millions of Americans, causing crippling debt that has become an unfortunate fact of life that has impacted most for decades. What many don’t consider is what happens when other pressing financial concerns present themselves, such as in the case of a cancer diagnosis. The intersection of student loan debt and cancer payments may seem insurmountable at first, but thankfully there are options to help ease these burdens. The Deferment for Active Cancer Treatment Act is one of the primary ways patients can balance student loan debt and cancer costs, helping them maintain their financial health in order to get back on the path to physical health. Before this legislation was enacted in 2018, the process for having student loan deferred during cancer treatment was uncertain and came with lots of red tape. Lenders typically approved such requests arbitrarily, with little formal protocol in place and, even if payments were temporarily halted, loan holders still accrued interest at the same rate. As many know, student loan interest can significantly add to the overall amount owed, so simply allowing people to stop their monthly payments for a time wasn’t much of a help for cancer patients. That’s where the Deferment for Active Cancer Treatment Act comes in. The legislation amended the Higher Education Act of 1965 to mandate that lenders must allow those in active cancer treatment to pause their loan payments as well as stop accruing interest during the deferment period. Once the patients are back on their feet, they simply resume their payments just as they had before. The bill was supported by a bipartisan...

How to Manage Neuropathic Pain during Cancer Treatment

Side effects of cancer treatment are varied, depending on the type of therapy, the individual diagnosis, and the person’s body; however, it’s fair to say most cancer patients will have to deal with some unfortunate side effects. The most known effects of chemotherapy are hair loss and nausea, but this treatment and others can cause a host of other negative physical impacts. Neuropathic cancer pain is one phenomenon associated with a number of chemo drugs. Neuropathy, which occurs after damage to the peripheral nerves, may present as numbness, tingling and burning in the hands and feet, numbness around the mouth, loss of sensation, constipation, physical disorientation, and weakness. Patients who have previously been treated with chemotherapy and those who have been diagnosed with diabetes, alcoholism or malnutrition are all at higher risk for neuropathic cancer pain. While each patient’s case is different, according to Healthline, there are a number of home remedies for neuropathic pain that may provide some relief, such as: Exercise: Regular exercise, to the extent that is safe and comfortable for patients, promotes proper blood flow, can reduce blood pressure and slow nerve damage. Warm bath: Warm water can help increase blood flow, which may decrease the symptoms of neuropathy. Essential oils: Chamomile and lavender are especially known to decrease inflammation and promote circulation. Meditation: Already used by many cancer patients, meditation can be particularly beneficial for helping patients to learn to overcome neuropathic cancer pain. Acupuncture: Stimulating pressure points can trigger the body to release chemicals that help it manage pain. Vitamins: Vitamin B, either in food or as a pill, is especially helpful for...