by Life Credit Company | May 17, 2018 | Financial Assistance for Cancer Patients
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... read more
by Life Credit Company | May 10, 2018 | Understanding Your Life Insurance Policy
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... read more
by Life Credit Company | Apr 26, 2018 | Financial Assistance for Cancer Patients
Just how much does cancer cost? It’s difficult to pinpoint, but what is easy to determine is that cancer can be extremely expensive, even financially toxic for some people. The Cancer Action Network estimates that the 2014 cost of cancer care in the United States was a staggering $87.8 billion, a number shared by patients, employers, insurance companies and public programs. CAN notes it’s difficult to put a price tag on the individual costs of cancer because there is so much variation in treatment methods and insurance options, but out-of-pocket expenses may easily exceed $200,000, according to the organization’s cancer treatment cost statistics. Forbes estimates that the average cost of cancer treatment was equal to about 11 percent of patients’ income in the United States. Where does all the money go? There are a number of things that drive expenses, such as high prescription costs, copays for doctor visits, exorbitant costs of treatments like chemotherapy and hospital fees for surgery. Then there is the indirect, and often unexpected, cost of cancer care. Expenses like childcare, mental-health treatments, transportation to appointments, lost income from reduced working hours and potentially a job loss all add onto the cancer treatment cost, and can significantly overwhelm patients. Financial Help For Cancer Patients Some may be so eager for quick cash that they decide to sell their life insurance policy in what is called a viatical settlement. Such an agreement involves the transfer of a policy to a third party for less than what it is worth, with the policyholder able to use the lump sum proceeds to address his or her immediate financial needs.... read more
by Life Credit Company | Apr 19, 2018 | Cancer Treatments & Therapies
When facing mounting debt, some cancer patients and their families may begin to explore the best way to convert life insurance into cash and supplement their dwindling income. Some consider taking advantage of a life insurance conversion credit and switching their policy from term life to whole life, others explore medical and cancer loan options. Medical emergencies or cancer treatments often leave people unable to work or forced to work fewer hours, leading to reduced pay. Paying necessary bills like mortgage or rent become a major roadblock to recovery. On top of shifting lifestyle changes, cancer, serious illness, and many medical conditions often come with hefty price tags. If you are in need of financial assistance, how can you convert life insurance into cash and get relief from a financial crisis? 1. Use your policy’s benefit riders. Life insurance is generally considered a way to protect one’s assets and beneficiaries after death, but in some cases, its value can be maximized while a person is still living. If your policy contains a benefit rider, such as accelerated death, accidental death, or disability income, then your insurance company may allow you to draw cash advances from the amount you have paid into a policy. The type of policy you have will play a major role in how you can convert your life insurance policy into cash. Cash advances and allowances are typically only used for permanent, or whole life policies. 2. Take advantage of a term life insurance conversion credit If you have a term life insurance policy you may consider asking your insurance company about a life insurance conversion credit and switching to a whole life policy... read more
by Life Credit Company | Mar 29, 2018 | Understanding Your Life Insurance Policy
If you’re looking to sell your life insurance policy, you have likely encountered the concept of a viatical life settlement. While such a life settlement can provide quick cash, it does so at a cost—and for some, that price may be too high. What is a Viatical Settlement? Weighing the pros and cons of a viatical settlement first comes down to understanding what it is. A viatical settlement involves the sale of a life insurance policy to a third party. This type of life settlement typically occurs when a person is facing a terminal illness and would rather have a lump sum of money from his or her life insurance while still living, as opposed to passing the death benefit down to a beneficiary. This arrangement, also called a senior settlement, usually results in a payment that is higher than the cash value of the policy, yet less than the death benefit. Essentially, the policyholder is compromising on the policy’s value in order to be able to get a rapid payoff. Often, such money may be needed to ease the burden of medical bills, or could even help a person live out his or her final months in comfort. However, a viatical settlement isn’t the only option for those looking to draw value from a life insurance policy. What Other Options Are There? Loans on life insurance can also provide financial assistance to cancer patients and others in need. Such options, however, don’t involve the full surrender of a life insurance policy, but rather a temporary transfer, which means the holder and his or her family can ultimately regain... read more
by Life Credit Company | Mar 15, 2018 | Understanding Your Life Insurance Policy
When you purchase life insurance, you typically do so to prepare for after your death. However, an insurance policy is an owned entity and, as such, can be sold or used as collateral for a loan in order to provide cash value to someone in need. Just as there are many questions when considering whether to get term insurance or whole life insurance, there are also a lot of factors to consider if you choose to use your policy to access the cash you’ve invested in it. It’s important to understand terms like absolute assignment and collateral assignment, as well as weigh the differences, in order to satisfy your particular financial needs. What is absolute assignment of life insurance? Absolute assignment in insurance involves signing over your entire policy to another person or entity. The person who is selling or gifting the policy is known as the assignor, and the individual or individuals who receive it are the assignee. The assignee takes full ownership of the policy, being held liable for any premiums and also having the authority to change or designate new beneficiaries. What is a collateral assignment of life insurance? Collateral assignment of life insurance essentially works like a standard loan. The insurance policy is “collateral” for a loan, and the person or organization that pays out that loan is the temporary beneficiary of the policy’s death benefit until the loan is repaid. The entity taking over the policy does so on a conditional basis and, therefore, doesn’t have the authority to make changes to it, re-sell it or take any of its cash value. Instead, the assignee... read more
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