By Life Credit Company | Updated March 2026 | Explore Your Financial Options
Nobody wants to think about end-of-life financial planning. But the people I've worked with over the years — those facing serious illness, those caring for a dying parent, those trying to sort out a spouse's affairs after an unexpected death — they all say the same thing: they wish they had started this checklist sooner.
End-of-life financial planning isn't about giving up. It's about making sure every dollar you've worked for actually reaches the people you love. It's about making sure your family isn't fighting probate court while they're still grieving. And if you're facing a terminal illness, it's about making sure you have access to the resources you need right now — not just when you're gone.
This checklist covers every major financial step, from updating a beneficiary form to accessing your life insurance policy value while you're still alive. Work through it at your own pace. Even completing a few items puts you far ahead of where most families are.
What's Covered in This Checklist
☑ 1. Life Insurance Policy Review
Your life insurance policy may be one of your most valuable financial assets — and one of the most misunderstood. Start here.
Most families don't realize that a life insurance policy can be a source of immediate funds when facing a terminal illness — not just a check written after death. We'll cover all those options in detail below.
☑ 2. Beneficiary Designations
Here's a fact that surprises many people: beneficiary designations override your will. If your will leaves everything to your spouse, but your life insurance still lists your college girlfriend as the beneficiary, she gets the money. Courts have upheld this time and again.
Beneficiary updates are one of the most important — and most neglected — parts of end-of-life financial planning.
☑ 3. Will and Estate Planning
A will is the foundation of any end-of-life financial plan. Without one, your state's intestacy laws decide where your assets go — and that may not match your wishes at all. If you have minor children, a will is the only document that lets you name their guardian.
☑ 4. Living Trust
Probate — the court process for distributing a will — can take 6–18 months and cost 3–7% of your estate. A revocable living trust allows your assets to pass to your heirs without going through probate at all.
A living trust is particularly valuable if you own real estate in multiple states, have a blended family, want to set up long-term care for a disabled family member, or intend to leave assets to a charity.
☑ 5. Advance Directives
Advance directives are legal documents that spell out your healthcare wishes when you can no longer speak for yourself. For anyone with a serious illness, these documents are not optional — they are urgent.
Without them, medical decisions fall to your family — who may disagree, may not know your wishes, and who will face agonizing choices at an already devastating time.
☑ 6. Power of Attorney
A power of attorney (POA) designates someone to act on your behalf — for financial decisions, legal matters, or healthcare — when you can't do so yourself. This is separate from your will (which only takes effect after death) and from your healthcare proxy (which covers medical decisions).
"The single biggest mistake I see in end-of-life financial planning isn't the wrong investment. It's not having a durable power of attorney before a crisis hits. Once someone loses capacity, the only option is going to court — which is expensive, slow, and public."
☑ 7. Funeral and Final Wishes Planning
The average funeral costs $7,000–$12,000. Without pre-planning, your family will make emotionally charged decisions under extreme time pressure, often spending far more than you would have wanted. Pre-planning removes that burden from them entirely.
☑ 8. Debt Management
Your debts don't disappear when you die. Most are paid from your estate before assets reach your heirs. Understanding which debts transfer and which don't — and planning accordingly — can protect your family's inheritance.
☑ 9. Retirement Accounts and Social Security
☑ 10. Accessing Your Life Insurance Value Now
This is where most financial planning guides stop — but it's where we go deeper. If you're facing a serious or terminal illness, your life insurance policy may be one of the most powerful financial tools available to you right now, not just at death.
There are four main ways to access the value of a life insurance policy before you die:
| Option | Who It's For | How It Works | Key Consideration |
|---|---|---|---|
| Accelerated Death Benefit (ADB) | Terminal/chronic illness, per policy rider | Insurer pays a portion of death benefit directly | Reduces death benefit dollar-for-dollar |
| Policy Loan | Permanent policy owners with cash value | Borrow against cash value; no credit check | Limited to cash value; interest accrues |
| Living Benefit Loan | Seriously ill individuals; policy $100K+ | Borrow against death benefit through a licensed lender | Access more cash than policy loan; repaid from death benefit |
| Viatical / Life Settlement | Terminal illness or age 65+ | Sell the policy to a third party for a lump sum | Policy ownership transfers; no death benefit for heirs |
Living Benefit Loans: The Option Most People Don't Know About
A Living Benefit Loan allows seriously ill policyholders to borrow against their life insurance policy's death benefit — not just the cash value. This is a meaningful distinction. A policy worth $500,000 might have only $80,000 in cash value, but a living benefit loan could potentially access a much larger amount based on the full death benefit.
Life Credit is a marketing company (CA License #601K051) that connects qualifying individuals to licensed lenders offering this type of financing. The loan is repaid through the death benefit when the policy pays out — your family receives whatever remains after the loan balance is settled.
Key facts about living benefit loans:
- No credit check or income verification required
- Qualifying policies typically start at $100,000 in death benefit
- Funds can be used for any purpose: medical bills, mortgage, quality of life
- No monthly payments required during your lifetime (varies by lender)
- APR 35.99% maximum; actual rate depends on loan amount, term, and collateral
Learn more about how a Living Benefit Loan works, or compare all your options side by side.
☑ 11. Digital Assets and Records
Digital assets are often overlooked entirely in end-of-life planning — and increasingly, they represent real monetary value (cryptocurrency, digital businesses, online accounts) or irreplaceable personal value (photos, emails, family videos).
One Final Thought: Do This While You Can
The most common thing I hear from people who delayed end-of-life financial planning is some version of: "We thought we had more time." And that's almost always true — we assume there will be a better moment, a less stressful week, a time when it won't feel so heavy to think about.
The truth is, there's never a comfortable moment. But there's a right moment — and that moment is now, when you still have full legal capacity, when you can sign documents, when you can have these conversations with your family face-to-face.
If you're dealing with a serious illness and need immediate financial help, don't wait on the other items to access your life insurance options. Learn how a Living Benefit Loan works, or call us at 1-888-274-1777 to speak with someone today — no obligation, no pressure.
Facing a Serious Illness? Let's Talk About Your Options.
Life Credit connects qualifying policyholders to licensed lenders for Living Benefit Loans — access to your life insurance value when you need it most. Policies starting at $100,000. No credit check required.
Frequently Asked Questions: End-of-Life Financial Planning
What should be on an end-of-life financial planning checklist?
A complete checklist covers: reviewing all insurance policies and beneficiary designations, creating or updating your will and any living trust, establishing a durable power of attorney for finances and a healthcare proxy, completing advance directives (living will, POLST), planning for funeral expenses, auditing and managing outstanding debts, reviewing retirement accounts, and exploring options for accessing life insurance value while still alive if you're facing a serious illness.
What financial steps should I prioritize if I have a terminal illness?
Move the legal documents to the top: durable power of attorney, healthcare proxy, and advance directive are urgent — they only work if you have legal capacity when you sign them. Simultaneously, review your life insurance policies for accelerated death benefit riders and explore living benefit loans if you need immediate funds. Then address beneficiary updates, will, and funeral planning. See our full FAQ page for more.
Can I access my life insurance money before I die?
Yes. Options include: (1) accelerated death benefit riders built into the policy, (2) policy loans against accumulated cash value, (3) living benefit loans — borrowing against the death benefit through a licensed lender like those Life Credit works with, and (4) viatical or life settlements — selling the policy outright. Compare all your options here.
What happens to debt when you die?
Most debts are paid from your estate before assets are distributed to heirs. Secured debts (mortgage, car loan) are tied to the underlying asset. Unsecured debts (credit cards, medical bills) are paid from estate funds — but generally cannot be collected from heirs personally. Jointly held debts may transfer to the surviving co-signer. Life insurance death benefits and retirement accounts with named beneficiaries typically pass outside of probate and are generally protected from creditor claims.
What is the difference between a will and a living trust?
A will specifies asset distribution at death but must go through probate — a court process that typically takes 6–18 months and costs 3–7% of the estate. A living trust takes effect while you're alive, lets you manage assets during incapacity, and allows assets to transfer to heirs without probate. Many estate plans use both: a trust to hold major assets, and a pour-over will to capture anything not transferred into the trust before death.