If you or someone you know is experiencing a medical crisis, like cancer, then you may have considered taking out a loan to cover treatments or medications. For those who have lost wages, cancer financial assistance is vital. Many patients and families consider borrowing against a life insurance policy for some quick cash.
Term life insurance policyholders are often ineligible for life insurance loans or a cash value payout because their policies are designed for a set period of time. Even though term holders may have paid a significant amount into their policies, they may not be able to access that money in an emergency.
An Alternative to Cash Value Pay Outs
Life Credit’s Living Benefit Loan is a loan alternative designed to provide financial assistance to patients with terminal illness and who need it the most. Life Credit Company takes a different approach to life insurance loans. A Living Benefit Loan allows policyholders to draw against their death benefit, regardless of the type of policy, including term and even group plans. If you have a death benefit valued at a minimum of $75,000, you may qualify for a Living Benefit Loan. Policy holders can receive up to half of the value of their benefit, with absolutely no fees or out-of-pocket expenses.
Often times getting financial help for cancer or a terminal illness comes with a lot of red tape, which Life Credit seeks to avoid. There is no credit check, and loans are often available in a matter of weeks. Contact a Life Credit representative today to learn more about how we provide financial help to cancer patients.
How Does Permanent Life Insurance Pay Out?
If you’ve been diagnosed with cancer or terminal illness, some life insurance companies—if you have a permanent life insurance policy–will allow you to take out a loan from the cash value of your policy as a form of financial aid. Often times, the policyholder is responsible for paying the loan back to the company, often at an interest rate of 5% – 9%. Discuss the details of your individual life insurance policy with a financial advisor and learn more about your loan options.