by Life Credit Company | Jun 9, 2020 | Financial Assistance for Cancer Patients
No one wants to think about end-of-life planning, but not being prepared can be damaging both for yourself and your loved ones—mentally, emotionally, and financially. On the financial front, we all plan and budget for big, life moments: college, a new job, buying a car or house, a wedding, having a baby and retirement, among them. So, why not also include end-of-life planning on that list, as your last moments are just as momentous as all of those other milestones in your life? Life Insurance: Know what your life insurance policy provides for you and your family. Consider the death benefit available and explore what financial obligations you may have near the end of your life, including medical bills and long-term care. If you may need financial assistance upfront, you can consider a Life Credit Living Benefit Loan to borrow against your policy and get immediate financial help—that can be paid back through your policy after your death. Will: This is an essential component of end-of-life planning. A will is a binding legal document that outlines details like how your assets will be distributed and, if you have minor children, who will serve as a guardian. Without a will, those decisions won’t be in your control. Beneficiaries: From life insurance to 401(k) plans, it’s critical to name beneficiaries so that your financial products can be properly distributed to those you select. Ensure that any joint accounts, such as a savings account with a spouse, are set to have a right of survivorship. This will allow your spouse or other loved one to inherit the funds without red tape like... read more
by Life Credit Company | May 20, 2020 | Financial Assistance for Cancer Patients
If you’ve borrowed against the cash value of your life insurance, you may be wondering, should I pay off my life insurance policy loan? Especially if you’re facing a serious illness, worrying about unpaid debt may be the last thing on your mind; however, not paying back a loan against your insurance policy could significantly impact your finances and those of your family. It’s important to first understand what a life insurance policy loan is and how it works. Policyholders who need quick access to cash—such as if they’re diagnosed with a serious illness and have mounting medical bills—may be able to apply for a loan through their insurance company that can give them access to the cash value of their plan. Not everyone is eligible, though: Such loans are only available to those with whole or universal plans, not term, and are only worth up to the amount the policy has accrued in cash value; those who haven’t been paying into their policies long enough for them to accumulate such value may not be able to secure a loan. When it comes to the question, should I pay off my life insurance policy loan, you should learn about the particular provisions of your loan. Most insurance companies that allow policyholders to borrow against their policies’ cash value require that you pay the loan back in full before your death. During that time, the loan will accumulate interest—at a rate that may be as high as 8%—which can make the payback amount drastically increase over time. Do Insurance Policy Loans Mandate Repayment? Most insurance policy loans, however, don’t mandate... read more
by Life Credit Company | May 13, 2020 | Understanding Your Life Insurance Policy
If you’re facing a serious medical diagnosis or approaching your later years, you might be starting to think about your final expenses. Though it’s not a pleasant event to plan for, many people feel some peace of mind from knowing that, when they do pass, they’re able to help their families lay them to rest without incurring significant debt, and may even be able to leave them some extra money to support their own financial futures. As you explore your options, you may have come across the topic of guaranteed life insurance. What is Guaranteed Life Insurance? If you’re not familiar with the term, guaranteed life insurance is largely exactly what its name suggests: It’s a way for people who have exhausted other options for insurance to be approved, mostly with no questions asked. While that may sound too good to be true on its face, guaranteed life insurance does come with both pros and cons. Here are a few: What are the Pros of Guaranteed Life Insurance? A serious medical condition like cancer usually restricts someone from applying for life insurance, as the company typically wouldn’t want to take on the liability of a policyholder who may not live long. Seniors also often have trouble being approved for traditional policies, which may have them seeking out alternatives, such as simplified whole life insurance, an option that allows applicants to be at a moderate health risk. However, many may not even qualify for that type of plan, which is why guaranteed life insurance can be a very valuable tool. With such a plan, a policyholder does not have to... read more
by Life Credit Company | May 6, 2020 | Financial Assistance for Cancer Patients
Financial outlets like Social Security and life insurance proceeds can be significant sources of assistance for those who are in need of financial assistance, including for medical conditions like cancer. A health scare—especially one that has such a high price tag attached to it—may prompt you to re-examine your financial health, as you strive to make sure you can meet the pressures of mounting medical bills and still protect your financial future, and that of your family. As you work to get your finances in order, you may wonder how your Social Security and life insurance proceeds may impact one another. Social Security benefits like Supplemental Security Income (SSI) can, in some cases, be affected by your life insurance, but it’s important to first understand the nuances of your insurance policy, as well as your particular SSI profile. What is SSI? SSI is a government program that provides payments to seniors (over age 65), as well as those who are disabled. Income and assets are considered in how much SSI benefits an individual can qualify for, which is where the question of Social Security and Life Insurance proceeds comes in. Are Loans Against My Life Insurance Policy Earned or Unearned Income? If you have a term life insurance policy, you won’t be affected, as such policies build no cash value. However, if your whole or permanent life insurance has cash value, your eligibility for—and amount of—SSI benefits could be impacted. SSI weighs applicants’ earned and unearned income, and dividends being paid from a life insurance policy’s cash value are considered unearned income. The federal government also views a loan... read more
by Life Credit Company | Apr 17, 2020 | Understanding Your Life Insurance Policy
A conversion credit offers policy holders the option convert a term life insurance policy to a whole life policy – turning temporary coverage – into permanent coverage. Instead of getting an entirely new policy to take advantage of the cash value of whole life insurance, many policyholders convert their term policy to whole. Doing so, however, will significantly drive up monthly premiums, which is why many insurance companies offer a conversion credit that typically reduces the premiums for the first year of the newly converted policy. That allows you to ease into slightly higher premiums before the full increase takes effect. Differences Between Whole and Term Life Insurance Policies A whole, or universal, life insurance policy is active for the policy holder’s entire life—as opposed to a set number of years for term policyholders. It also builds cash value that owners can cash out if needed. Many people opt for a term policy, especially if they sign up when they’re younger, because of its more affordable premiums; however, as you age and your income level ideally rises, it may benefit you to consider a conversation credit and moving to a whole policy. However, for those who are already contending with a medical crisis, any type of additional expense may be a challenge, which is why a Life Credit Living Benefit Loan may be a more sensible and affordable option. Alternatives to a Cashing Out Your Life Insurance Policy Life Credit works with clients who have all types of life insurance but, for those who are exploring other options of drawing on their policy for financial support, they’ll likely want to... read more
by Life Credit Company | Apr 16, 2020 | Understanding Your Life Insurance Policy
Term Life insurance is designed to only function for a set amount of time; unlike whole coverage, term does not accumulate cash value. If the set timeframe expires, the policyholder does not have access to any of the premiums he or she paid throughout its duration. Many people view life insurance as a long-term solution, often just to be passed down to future generations. However, there is the potential for life insurance policies to have cash value that can be of vital assistance in a financial pinch, like those often faced by cancer patients. Does Life Insurance Payout for Cancer? When an unexpected financial challenge hits, you’ll have many questions: Should you tap into your savings? How can you access cash without getting into too much debt? Many dealing with cancer serious illnesses may consider a life insurance policy payout to reduce the risk of debt and ease financial burden. Payout options depends on the type of life insurance policy you own. Policyholders need to first determine the type of coverage they have. Whole, or permanent, policies protect the holder for the entirety of his or her life, and accumulate cash value that can be borrowed against. The more you pay into the policy throughout your life, the more cash value it ultimately has. Can you Borrow Money from Your Life Insurance Policy? Life Credit’s Living Benefit Loans offer you an alternative to traditional life insurance policy payouts. Life Credit pays up to half of a person’s death benefit on his or her life insurance policy, regardless of the type of policy. Even if you are a term policyholder, you... read more
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