Uncategorized Archives - Life Credit Company

What is a Living Benefit on an Annuity?

Preparing for your financial future involves considering not only the exciting ways you want to spend savings, but also how you might grapple with challenges, such as a medical crisis. Living benefit loans are one option that may arise in your decision-making process, with many financial products, such as annuities, often offering such policy add-ons. Living Benefit Annuity: How it Works An annuity is a collection of investments, which can often be diversified to maximize the returns. As part of the portfolio, an annuitant may be able to opt for a living benefit, meaning he or she can draw cash from the value of the annuity if needed. However, there are a number of factors to consider before doing so. Typically, the policy holder must invest a certain amount in order to guarantee he or she will receive a set living benefit, no matter how the investments perform, which may require a significant amount up front. Additionally, most annuities charge fees for choosing the living benefit feature, which may be paid on a yearly, quarterly or monthly basis, depending on the agreement. Living benefit annuities typically are divided into the initial investment, known as the income base, and the value of your investments, called the account balance. Investors can withdraw the account balance at any time, but will incur hefty fees; the income base, however, can only be drawn upon if it’s converted into incremental amounts to be paid out over the remainder of one’s lifetime. In other words, a living benefit annuity may be a good option for those planning for retirement and those who have a nice...

What is a Benefit Rider?

When it comes to choosing a life insurance policy, there are a dizzying number of options. Prospective policyholders have to consider everything from group vs. individual and term vs. whole, depending on personal circumstances. Additional, customizable options are also available in the form of benefit riders. Insurance benefit riders are, most simply, add-on elements to an insurance policy that can be invoked throughout the duration of the policy, depending ion individual situations. For instance, those in need of finances for cancer patients may be eligible for living benefits, if the policyholder added such a rider to the policy. Most Common Benefit Riders Used For Cancer Treatment Funding Accelerated death: This worst-case scenario option typically is provided in the case of a terminal illness, in which the policyholder is not expected to live more than two years.If eligibility requirements are met, the accelerated death benefit rider usually allows the individual to access cash advances from their death benefit. Though it can provide funding to help a person live out his or her final days comfortably, it will reduce the amount left to beneficiaries’, which is a consideration. Accidental death: Insurance companies often offer the option for an accidental death rider, which provides added money on top of the standard death benefit if the policyholder dies of a non-medical cause. Such riders can be used in the case of a car accident or a slip and fall. Disability income: This add-on allows for monthly payments from the insurance company if the policyholder becomes permanently disabled. Cancer treatment funding could be accessed through this type of rider, depending on the person’s prognosis....

Can You Cash Out of Term Life Insurance?

From grants to loans and everything in between, financial options for cancer patients are wide-ranging, and widely needed. As medical bills mount and working hours are restricted, cancer patients and their loved ones often start exploring ways to stabilize what can be shaky financial footing. One option that can be complex, yet valuable, is a life insurance policy. If you’ve begun researching whether you can cash out of term life insurance as a cancer patient, chances are you’ve gotten a number of answers. There isn’t a simple response, though there are a number of conditions, as well as many factors to consider. First, it’s important to understand the difference between the leading types of life insurance, term and permanent. Term: This policy protects the holder for a set number of years, such as 10 or 20. The individual pays premiums during that time and, should anything happen to him or her in that timespan, the policy holder’s beneficiaries would receive an agreed-upon benefit. However, if the person lives past that expiration date, the coverage stops and the holder receives no benefit. Permanent: As the name suggests, this policy covers a person throughout his or her entire life, and pays out a lump-sum benefit upon his or her death. It often requires a larger investment than a term policy but comes with the guarantee of a payout. With financial toxicity a serious threat of cancer, there is a real need for financial assistance for cancer patients. A number of options exist for those who are considering tapping into term life insurance policies. There are Financial Options for Cancer Patients Some...

What is a Living Benefit?

Many Americans are familiar with the concept of a death benefit, or the amount paid out from your life insurance policy after your passing. However, fewer people are as aware of the idea of a living benefit, which can be just as crucial to a family during a loved one’s final days. Living Benefits on Life Insurance Defined A living benefit is a portion of a person’s death benefit from their life insurance company, typically granted to an individual when he or she is facing a terminal prognosis. Living benefit programs vary depending on the provider but most require the insured to provide proof of an illness that is expected to claim his or her life within 24 months. If the applicant is approved, living benefits typically range from a quarter to 100 percent of what the policy’s death benefit amounts to and can be used for whatever the policyholder needs. The individual may choose to use the funds for medical care, or to plan ahead for funeral or other end-of-life expenses. Planning for the Future The prospect of a terminal illness is a frightening one that many people don’t want to seriously consider when making plans for their future. Because of that fear, some may miss out on the opportunity to add a living benefit rider to their life-insurance policy, and many companies won’t approve such additions, even in an emergency situation. Closing that gap is a goal of Life Credit Company’s living benefit loans. Such loans allow applicants to receive a portion of their insurance policy’s death benefit while still living. Since the program does not require...

Getting Financially, Physically Well with Life Credit

Under normal circumstances, finding the money for emergency home repairs is a challenge; factor into the equation a cancer diagnosis and that challenge may seem insurmountable. That’s where Life Credit Company comes in. Our living benefit loans provide vital financial help for cancer patients, allowing them to manage day-to-day expenses with a clearer mind — ultimately enabling them to focus on their physical health. From combatting a leaky roof to paying down medical bills, these Life Credit testimonials shed light on the many ways our programs help cancer patients get on the path to financial health. “Hi, I’m Rebecca from Houston, Texas, and I’ve been battling cancer for four-and-a-half years. This past fall I was diagnosed with stage four cancer. Because I was not able to work full-time continuously during this four-and-a-half years, both mine and my husband’s credit took a hit. This past spring we had leaks in our roof and turns out we needed a new central AC unit. Because of our credit, we were not able to get a loan and we had gone through our life savings. So, I started researching and looking for alternatives. Through that, I found Life Credit and I looked into them. I am a former fraud analyst with a national bank and my husband is a police officer, so we’re naturally skeptical people. I researched thoroughly Life Credit and found absolutely nothing negative. I went through the Secretary of State, Better Business Bureau and I really thoroughly researched them. I called and I did speak to Craig initially and he answered all my questions. When I was ready to commit,...

How Being Preventative Can Impact Your Finances

When deciding a course of treatment for cancer, most patients will likely explore a range of options, from the most conservative to the most aggressive. The decision on which path to take may involve extensive medical testing, consults with physicians and specialists and discussions with loved ones about the short- and long-term impacts of the treatments. Another consideration may be finances. The cost of preventative cancer care may sway some patients against more aggressive forms of treatment, while for others the expense may be worth the peace of mind. According to a recent report in HealthDay, women diagnosed with breast cancer who opted for a double mastectomy — the removal of both breasts, often undertaken to prevent the future recurrence of cancer — faced more pervasive financial challenges than those who pursued less-aggressive forms of treatment. More than half of the 1,000 women studied had a lumpectomy, the most conservative treatment, while a third chose chemotherapy and the remaining had a mastectomy, either bilateral or unilateral. The women who had both breasts removed were eight times more likely than those who had a lumpectomy to miss more than four weeks of work following the procedure. Those reduced working hours amounted to an average loss of more than $5,000 in income over that month. Complicating the matter is that studies have shown that women who opt for a bilateral mastectomy largely would have achieved the same medical results from a lumpectomy — but pursued the more-aggressive treatment to err on the side of caution. While there are pros and cons to being aggressive, the decision ultimately lies with each individual...