All loans for cancer patients are not the same. Just like understanding the different types of cancer treatments, knowing how different loans work will help you choose what’s best for you.
Facing One Common Problem
Although the types of cancer vary, the vast majority of them do share one problem: huge medical bills and other financial needs brought on by the disease. Those needs can be wide ranging, such as spending money to cross something off a bucket list to paying for basic living expenses. Each person and their needs are unique.
There are many sources of financial support, from networks of family, friends and relatives, to investments to fund raisers. We’ve discussed some of these in past blogs, and you probably know we specialize in loans on life insurance.
The Viatical Settlement
The American Cancer Society notes that there are several ways to access money in a life insurance policy. One is the viatical, or life settlement. This is the sale of a life insurance policy when the insured person (or viator) is not expected to live very long. The holder gets a lump sum cash payment, after having their estimated life expectancy certified by a doctor. That life expectancy can be as long as several years. But the length of life expected has an impact on the value of the policy, which is usually sold for anywhere from 30% to 80% of its face value.
The downside is that the entire death benefit goes to whoever purchases the policy, cutting out beneficiaries.
Loans on Life Insurance
We offer loans structured in very specific ways, focused on the needs of the patient. By lending money on policies that have a value of $75,000 or higher, we organize it so that the beneficiaries remain the beneficiaries, and they receive what remains after the loan is repaid from the death benefit. We also realize that loan repayments and interest payments are both a hassle and sometimes difficult. So, we get repaid when the death benefits are disbursed; there are no payments required from you beforehand. Finally, you decide what the money is used for. Whether it’s medical bills or whatever you need, that’s entirely in your control.
If you have been researching loans for cancer patients and this might make sense for you, give us a call. We have trained counselors ready to listen to your needs.