Pros and Cons of Guaranteed Life Insurance for Cancer Patients

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...

What Is A Conversion Credit On Life Insurance?

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...

Does Term Life Insurance Have Cash Value? 

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...

What is High-Risk Life Insurance

There are a number of factors that go into creating an individualized life insurance policy, including the policyholder’s age, social habits, past medical history, and health risks. An insurance company will weigh all of these aspects to determine if it wants to insure the individual and, if so, at which rate. Most people have no problem being accepted into a plan but others may face challenges because of their histories or lifestyles that means they have to consider high-risk life insurance. So, just what is high-risk life insurance? What is High-Risk Life Insurance? This term refers to a policy assigned to someone deemed a high risk. Several factors can influence this determination, such as whether the person has a dangerous job or hobby, has a history of risky habits or has been diagnosed with a serious illness. For instance, an occupation such as a firefighter may put someone into the high-risk category, as insurance companies evaluate both the rates of death and injury for such an occupation as well as the company’s own history of insuring people who work in this field. A hobby such as skydiving is another activity that could mean the person has to invest in high-risk insurance. Smoking is one of the most common high-risk habits and one that many people attempt to kick before applying for insurance; typically, most insurance companies will offer a lower rate to applicants once they’ve been smoke-free for at least a year. High-risk diseases are those considered the most serious and life-threatening. For instance, asthma or controlled anxiety or depression shouldn’t affect a person’s ability to get insurance, but...

What is an Accelerated Death Benefit Rider?

An accelerated death benefit generally enables policyholders who have been diagnosed with a terminal illness to draw cash advances against the value of the death benefit. There are several common types of death benefit riders. The purpose of death benefit riders is to give an individual access to the cash value of his or her insurance plan while he or she is still alive. Another option is the enhanced death benefit, which pays out the highest investment gain the policy attained, even if the market value is less. Those with a variable annuity death benefit may be able to attach riders to enable cash advances and a payout that is higher than the minimum.  Pros and Cons of Death Benefit Riders Life insurance is traditionally understood as helping people plan and prepare for the end of their lives. Many policyholders aim to use the amount of their plan to help beneficiaries pay for things like funeral costs, to settle final arrangements or to help reduce debt once they have passed. However, after a lifelong investment, they should be able to use the value whenever they need it and, that’s where a death benefit rider may come in. People with a terminal illness may be able to convert their life insurance policy to cash. Death benefit riders can help policyholders customize a plan that makes sense for them; however, there are some factors to consider. Riders do increase the cost of a plan, which could be a serious consideration for some individuals. Plans that enable policyholders to draw on the value while they’re still alive also come with some drawbacks,...

5 Reasons to Buy Life Insurance

Should I buy life insurance? That may be a question you have asked yourself over the years as you have worked to get your financial future in order. There are plenty of reasons to buy life insurance, yet some people may be hesitant to make the investment, as they envision it primarily as a way to prepare for their passing, which can be challenging to envision. While life insurance is indeed a smart option to help your family manage finances after your death, there are also plenty of advantages that you can reap today. Here are a few of the top reasons to buy life insurance: Financial emergencies: In certain cases, you may be able to take payouts from or borrow against your life insurance to deal with financial emergencies. For instance, with a Life Credit Living Benefit Loan, you can borrow against the value of your policy’s death benefit to cover financial emergencies such as cancer care. Few people budget for medical crises, but with a life insurance policy, it’s possible to save yourself from going into debt and instead focus on your health. Final arrangements: While it can be uncomfortable to think about, funeral and burial costs are high, and assisting loved ones with making your final arrangements is one of the most common reasons to buy life insurance. No one wants to burden their family with financial responsibilities while they’re alive, and life insurance helps you to continue that commitment after your death. Affordable coverage: Despite what some may think, life insurance can be extremely affordable. The wide range of options when it comes to life...