Can Term Life Insurance Have Cash Value?

When an unexpected financial challenge hits, many questions may abound: Should you tap into your savings? How can you access cash without getting into too much debt? Can you borrow from your life insurance?

That last question is a complex one, as there are many types of life insurance, and different ways to use your policies. Many people view life insurance as a long-term solution, often just to be passed down to future generations. However, there is the potential for life insurance policies to have cash value that can be of vital assistance in a financial pinch, like those often faced by cancer patients.

Before delving into this topic, policyholders need to first determine the type of coverage they have. Whole, or permanent, policies protect the holder for the entirety of his or her life, and accumulate cash value that can be borrowed against. The more you pay into the policy throughout your life, the more cash value it ultimately has. Term insurance, on the other hand, is designed to only function for a set amount of time; unlike whole coverage, term does not accumulate cash value. If the set timeframe expires, the policyholder does not have access to any of the premiums he or she paid throughout its duration.

However, there are some exceptions to this structure, such as Life Credit’s Living Benefit Loans. Life Credit pays up to half of a person’s death benefit on his or her life insurance policy, regardless of the type of policy. Even if you are a term policyholder, you can borrow from your life insurance, if it has a value of at least $75,000.

The program is designed to provide immediate financial assistance to cancer patients and others dealing with serious medical conditions. Such challenges aren’t just a threat to one’s health but can also pose a serious financial strain. With Life Credit, cancer patients and others can easily and efficiently access the cash value of the life insurance policies they’ve paid into for years, in order to reduce their financial stress and focus on their health.

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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