When it comes to life’s most expensive moments — college, a wedding, buying a house — many people turn to loans. Loans can also be used for not-so-happy moments, such as a medical crisis like cancer.
With treatments, medications and lifestyle changes like lost wages, cancer financial assistance is vital for many patients, some of whom consider borrowing against a life insurance policy for some quick cash. There are a number of options for life insurance loans, which depend on the patient’s particular policy, as well as the details of his or her prognosis.
A Different Approach to Borrowing Against Term Life Insurance
Some life insurance companies will allow clients to draw on the cash value of their policy as a form of financial aid for cancer patients. The patient will be responsible for paying the loan back to the company, often at an interest rate of 5-9 percent. However, that option is only available for those with a permanent policy, or one that covers the policy holder for life, while term holders, those whose policies are designed for a set period of time, are ineligible. Even though term holders may have paid a significant amount into their policies, they’re not able to access that money in an emergency.
Life Credit Company takes a different approach to life insurance loans. allows policy holders to draw against their death benefit, regardless of the type of policy, including term and even group plans. Those facing cancer or other life-threatening illnesses who have a death benefit valued at a minimum of $75,000 are eligible. Policy holders can receive up to half of the value of their benefit, with absolutely no fees or out-of-pocket expenses.
Cancer financial help often comes with lots of red tape, which Life Credit seeks to avoid. There is no credit check, and loans are often available in a matter of weeks.
No matter the type of policy you chose, Life Credit believes that, like anything else you own and have paid into, you should be able to use your own life insurance when you need it.