Can I Borrow From My Life Insurance Policy?
Yes! Life Credit provides answers to some frequently asked questions about borrowing from your life insurance policy, interest rates, and qualification terms. The Living Benefit Life Insurance Loan program provides financial assistance for cancer patients by getting them access to cash for medical bills and treatment.
How does your life insurance loan program work?
Our loan is secured solely by your life insurance policy. There is no other asset we need and your credit history does not matter. We will loan you a percentage of your death benefit today and those funds can be spent however you desire. There are no out-of-pocket fees or expenses with our loan and the interest is not paid out of pocket. Our entire loan ultimately gets repaid from the death benefit of the policy. The difference between the loan and the death benefit will go to your beneficiaries. Learn more about how to get Financial Assistance as a Cancer Patient.
Who pays the life insurance premiums of my policy going forward?
Life Credit Company will pay all of your policy’s future life insurance premiums.
Does your program work with Term or Group Policies?
Yes. If you are interested in borrowing against your term or group life insurance policy, please contact us. Our program works with all types of life insurance policies including the Federal Employees’ Group Life Insurance (FEGLI) Program.
How do I qualify for a life insurance or FEGLI (Federal Employees’ Group Life Insurance) loan?
If you have a life insurance policy with a death benefit of at least $75,000 and a qualifying medical condition, cancer, or serious illness then you may qualify for a Living Benefit Loan and borrow from your life insurance policy. Learn more about how to qualify for a cancer loan.
What information do you need from me?
First, we’ll need a copy of your medical records along with a recent life insurance policy statement to approve your loan. All of this information would be gathered during your application process and can be sent to us via mail, fax or email – whichever is easier for you.
How much can you borrow from your life insurance policy?
The amount you receive could be up to 50% of your life insurance policy’s death benefit. Your cancer loan amount is based on several factors. Learn more about how borrowing from your life insurance policy works.
What are Life Credit’s interest rates and other fees on a Living Benefit Loan?
There are no out-of-pocket fees at any time. When borrowing against life insurance, the interest rate can vary depending on the state. Please call us at 1-888-274-1777 to learn more about interest rate in your state.
How long will it take to receive my living benefit loan?
We have made borrowing against your life insurance policy a very quick process. You can receive your loan in as little as 3 weeks from the date of application.
Can I (or my family) ever be held personally liable for the loan?
No, our loan is secured solely by the life insurance policy. There is no other collateral required.
What if I have poor credit?
We will not check your credit score. You will NOT be disqualified due to poor credit, lack of income or a previous bankruptcy. Read more about overcoming Financial Stress as a Result of Cancer.
Do I have to pay taxes on the loan proceeds?
No, your loan proceeds are not taxable. However, Life Credit Company does not offer tax or legal advice so you should seek your own professional opinion to verify.
How do I get started?
Speak to a professional counselor at Life Credit Company to learn more about the financial assistance you can receive from a medical loan.
We can help!