Understanding Life Insurance Loans

When should you borrow against life insurance and how does that work? There are a lot of factors to consider and we can help you find answers to some of the most common questions about life insurance loans.

The first question is whether the policy actually can be borrowed against when you are trying to borrow money from your insurance carrier. Term life cannot because it is for a specified time and expires. It also doesn’t accumulate any cash value. However, whole life and universal life policies do build cash value over time.

Getting Familiar With Life Insurance Loans

The longer you’ve had the policy, the more cash has had a chance to build up in it. You may want to consider other loan sources first — a home equity line of credit, for example, can feature very reasonable interest rates.

But other loan sources come with a catch: you have to make regular payments on them, which can be difficult depending on circumstances. That isn’t true with a loan against life insurance, because the insurance policy acts as collateral against the loan. You don’t have to make payments.

Consider the circumstances, such as the speed with which the borrower needs the money and whether they qualify for other loans. A loan against life insurance can be extremely convenient because it does not rely on the credit score of the borrower. That may sound too good to be true but it is true: the lender is protected against default by using the insurance policy as collateral.

Life insurance loans also have another advantage: the loans are tax-free. And there is no restriction or purpose for which the loan must be used — that’s up to you.

These advantages of no loan payments, tax free, fast delivery, and ability to use the money for any purpose combine to make a life insurance loan a great choice.

Is Your Policy Eligible for a Loan Right Now?

Should you borrow against life your life insurance? Generally, the policy must have a minimum death benefit of $75,000 to qualify for a loan through us. If that is the case, we can work with you to determine further eligibility questions and what can be borrowed.

Call us at 1-888-274-1777 to learn more or read about borrowing against life insurance here.

Life Credit Company

We are a licensed consumer lender that is dedicated to providing financial assistance for patients who are facing serious illness. With a Living Benefit Loan, from Life Credit Company, you can receive up to 50% of your life insurance policy’s death benefit today. Whether you need to catch up on medical bills, consolidate debt or take your family on a dream vacation, this is your money to spend without restrictions. If you have at least $75,000 of life insurance and have been diagnosed with cancer or other serious medical condition, you may qualify for a loan. Contact us today to speak with a professional counselor who is standing by to assist you.

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  1. do you have any loans available for term life policy? I have a 50,000 term life policy. I have stage iv breast cancer. If you have any products available, please let me know.

    thank you so much

    • Yes we may be able to assist you. Please call us at 888-274-1777 to speak with one of our consultants for assistance.


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