When facing mounting debt, some people may begin to explore the best way to convert life insurance into income. This is a challenge frequently encountered by those grappling with a medical emergency, such as cancer.
Income for cancer patients is often sorely needed. When someone is undergoing cancer treatments, he or she may not be able to work or may have to work fewer hours, leading to reduced pay, which can make paying necessary bills like mortgage or rent a major roadblock. On top of shifting lifestyle changes, cancer and other medical conditions often come with hefty price tags. From treatment to medication and everything in between, patients facing serious illnesses are also likely facing serious costs.
That’s why some searching for ways to generate money for cancer patients may turn to life insurance. 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. Some insurance companies allow for an individual to draw cash advances from the amount they have paid into a policy in case of emergency, such as if he or she is facing a terminal illness. However, the type of policy is key, as such an allowance is typically only used for permanent, or whole, policies.
Policyholders can consider converting term to whole life in order to access funding for cancer patients, though that approach can have some drawbacks, such as higher premiums, which can be an obstacle for those already dealing with increased medical costs.
Life Credit takes a different approach with loans that allow an individual to borrow against his or her life insurance policy, regardless of it is term or whole life. As long as the person is facing cancer or another serious medical condition and has more than $75,000 in life insurance coverage, he or she can access up to half of the policy’s death benefit to deal with the pressing, immediate financial challenges a medical crisis brings.
When such a situation arises, navigating the complexities of converting term to whole life may add another layer of stress, which is likely the last thing someone facing a serious medical challenge needs. Life Credit’s Living Benefit Loan can connect policyholders with their money in just days—freeing up their time to focus on healing.