Frequently Asked Questions

Life Credit answers commonly asked questions about how to borrow from my life insurance policy, interest rates, and qualification terms. If you have a question and cannot find the answer here, call us directly at 888-274-1777 or contact us online.

 

The Living Benefit Program

Can I Borrow From My Life Insurance Policy?

Yes! The Living Benefit Life Insurance Loan program provides financial assistance for cancer patients by getting them access to cash for medical bills and treatment. Life Credit is a licensed consumer lender that is dedicated to providing financial assistance for cancer patients and others who are facing serious illness.

How does your life insurance loan program work?

Our loan is secured solely by your life insurance policy. There is no other asset we need and your credit history does not matter. We will loan you a percentage of your death benefit today and those funds can be spent however you desire. There are no out-of-pocket fees or expenses with our loan and the interest is not paid out of pocket. Our entire loan ultimately gets repaid from the death benefit of the policy. The difference between the loan and the death benefit will go to your beneficiaries. Learn more about how to get Financial Assistance as a Cancer Patient.”

Who pays the life insurance premiums of my policy going forward?

Life Credit Company will pay all of your policy’s future life insurance premiums. Learn more about how a Living Benefit Loan works.

Does your program work with Term or Group Policies?

Yes. If you are interested in borrowing against your term or group life insurance policy, please contact us. Our program works with all types of life insurance policies including the Federal Employees’ Group Life Insurance (FEGLI) Program. Learn more about taking a loan out on a term life insurance policy.

How do I qualify for a life insurance or FEGLI (Federal Employees’ Group Life Insurance) loan?

If you have a life insurance policy with a death benefit of at least $75,000 and a qualifying medical condition, cancer, or serious illness then you may qualify for a Living Benefit Loan and borrow from your life insurance policy. Learn more about how to qualify for a cancer loan.

What information do you need from me to start the Living Benefit Loan process?

First, we’ll need a copy of your medical records along with a recent life insurance policy statement to approve your loan. All of this information would be gathered during your application process and can be sent to us via mail, fax or email – whichever is easier for you. View the details of our simple loan process.

How much can you borrow from your life insurance policy?

The amount you receive could be up to 50% of your life insurance policy’s death benefit. Your cancer loan amount is based on several factors. Learn more about how borrowing from your life insurance policy works.

What are Life Credit’s interest rates and other fees on a Living Benefit Loan?

There are no out-of-pocket fees at any time. When borrowing against life insurance, the interest rate can vary depending on the state. Please call us at 1-888-274-1777 to learn more about interest rate in your state.

How long will it take to receive my living benefit loan?

We have made borrowing against your life insurance policy a very quick process. You can receive your loan in as little as 3 weeks from the date of application.

Can I (or my family) ever be held personally liable for the loan?

No, our loan is secured solely by the life insurance policy. There is no other collateral required. Discover the differences between a Life Credit Loan, absolute, and collateral assignment.

What if I have poor credit?

We will not check your credit score. You will NOT be disqualified due to poor credit, lack of income or a previous bankruptcy. Read more about overcoming financial stress as a result of cancer.

Do I have to pay taxes on the loan proceeds?

No, your loan proceeds are not taxable. However, Life Credit Company does not offer tax or legal advice so you should seek your own professional opinion to verify. Check out some information about how vatical settlements are taxed and what makes Life Credit different.

Understand Your Life Insurance Policy

What are key terms I should understand when I read my Life Insurance Policy?

Navigating key life insurance terms and definitions so you can determine the best way to use your life insurance policy is crucial when you have a terminal illness or cancer. The benefits of life insurance can offer you peace of mind, the opportunity to protect your loved ones in the future, and deliver immediate financial assistance in the event of an emergency. Check out some life insurance terms to know!

What is the difference between absolute and collateral assignment?

If you choose to use your life insurance policy to access the cash you’ve invested in it. It’s important to understand terms like absolute assignment and collateral assignment. If you’re facing a financial challenge, consider the big picture and weigh the differences. Compare life insurance policy assignments and learn more!

Which life insurance policy riders offer the most benefit?

Life insurance policy riders can add extra value to your policy. Policy riders are designed to meet specific needs, allowing you to custom-build a policy to your unique circumstances. Consult with an insurance professional to determine which riders will help you get the most out of your policy and offer you the best benefits given your unique needs. Check out these 5 common life insurance policy riders and learn more!

Improve Your Quality of Life

How can I plan a fundraiser for a cancer patient?

Cancer patients often face financial struggle. Planning a benefit for a cancer patient requires planning and communication. Make your fundraising efforts count and follow these great cancer fundraiser tips.

How can FMLA provide support for a cancer patient?

The Family and Medical Leave Act is designed to help employees manage the realities of balancing work and family. Cancer patients and their caretakers often struggle to juggle work schedules, family obligations and financial commitments. Using FMLA to care for a parent with cancer could be the first step in relieving some of the stress those obstacles create. If you are an employee battling cancer, be proactive about seeking support from your employer by working out an achievable return-to-work strategy, utilizing an Employee Assistance Program, and requesting FMLA to assist you with workplace challenges.

How is my Death Benefit Calculated?

A life insurance death benefit is a payout amount to the beneficiary of a policy when the insured passes away. While each policyholder will have individual circumstances there are some common ways to determine what your life insurance death benefit payout should be before you finalize your life insurance policy. To calculate your death benefit you should add together your annual income, the cumulative amount that would be lost if he or she died today and burial costs. If you have a death benefit rider in your life insurance policy then you may be able to take advantage of Life Credit’s Living Benefit Loan program and access the cash value of your insurance plan while you are still alive. As the patient and policyholder, you can determine how this cash is most beneficial to you – pay for medical treatments, pay bills, hire necessary home care assistance, etc.

How do I get started?

Speak to a professional counselor at Life Credit Company to learn more about the financial assistance you can receive from a medical loan.

We can help!

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