How to Borrow Money From Life Insurance Policies?

We provide answers to some frequently asked questions about borrowing from life insurance and our Living Benefit Loan program.

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 loan?

We provide much needed financial help for cancer patients and other seriously ill patients. You must have a life insurance policy with a death benefit of at least $75,000 when borrowing against life insurance.

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?

For anyone who wants to borrow against their life insurance, his/her loan amount is based on several factors:

  • Your policy size
  • Your current health
  • Your policy premiums

What interest rate do you charge on the loan?  Are there other fees?

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 contact us for interest rate information 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?

To learn more about how loans against your life insurance policy work, contact us to speak to a professional counselor.