Which Life Insurance Can You Borrow From?

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 marketing company dedicated to providing financial assistance for cancer patients and others who are facing serious illness.

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.

Life Credit will pay all of your policy's future life insurance premiums. This is one of the key benefits of our program — you are completely relieved of that financial obligation.

Yes. Our program works with all types of life insurance policies including the Federal Employees' Group Life Insurance (FEGLI) Program. If you are interested in borrowing against your term or group life insurance policy, please contact us.

If you own a life insurance policy with a death benefit of at least $100,000 and have a qualifying medical condition, cancer, or serious illness, you may qualify for a Living Benefit Loan and borrow from your life insurance policy. Learn more on our How to Qualify page.

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.

The amount you receive could be up to 50% of your life insurance policy's death benefit. Your loan amount is based on several factors including your health condition, policy type, and policy value.

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 rates in your state.

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. Loan approval is given within 3 days of a complete application.

No. Our loan is secured solely by the life insurance policy. There is no other collateral required. Your family will never be held personally liable for repayment of the loan.

We will not check your credit score. You will NOT be disqualified due to poor credit, lack of income, or a previous bankruptcy.

No, your loan proceeds are not taxable. However, Life Credit does not offer tax or legal advice so you should seek your own professional opinion to verify.

You can borrow from your life insurance using a collateral assignment loan (like Life Credit's Living Benefit Loan) with virtually any policy type, including:

• Term life insurance — the most common type; no cash value, but the death benefit serves as collateral
• Whole life insurance — permanent coverage with growing cash value
• Universal life insurance — flexible premiums with cash value accumulation
• Group life insurance — employer-provided coverage
• FEGLI — Federal Employees' Group Life Insurance
• Variable life insurance — investment-linked permanent coverage

The minimum policy death benefit required is $100,000. Traditional policy loans (from the insurance company itself) only work with cash value policies. Life Credit's program uses the death benefit as collateral, so even term policies qualify.

Yes. A Living Benefit Loan lets you borrow against your life insurance policy without surrendering or selling it. You remain the policy owner. Your beneficiaries remain the same. Life Credit takes a collateral assignment — meaning they are named as a secondary beneficiary only up to the loan amount. The policy stays in force, premiums are paid by Life Credit, and when the death benefit pays out, the loan is repaid first and your beneficiaries receive the remainder.

You can borrow up to 50% of your policy's death benefit. If your policy has a $200,000 death benefit, you may qualify for up to $100,000. The exact amount depends on your health condition, policy type, and insurer. Life Credit's minimum loan is $50,000 (based on the $100,000 minimum policy).

The maximum APR for Life Credit's Living Benefit Loan is 35.99%. Your actual rate depends on your state, loan amount, term, and policy collateral. Importantly, there are no out-of-pocket payments — interest accrues and is paid from the death benefit at the end of the loan, not monthly. There is also a 3% origination fee calculated on the policy's death benefit. Example: a $200,000 loan at 18% APR for 24 months totals approximately $295,188.80 including fees.

Life Credit's Living Benefit Loans have a minimum repayment term of 90 days and a maximum of 120 months (10 years). You are never required to make monthly payments. The loan is structured so that repayment comes from your policy's death benefit when it matures. Life Credit pays all future premiums to keep the policy active throughout the loan term.

Because Life Credit's loan is secured solely by your life insurance policy, you and your family can never be held personally liable. There is no foreclosure risk, no debt collection, and no impact on your personal assets. The loan is automatically settled from the death benefit when the policy matures. Your beneficiaries receive whatever death benefit remains after the loan balance is repaid. If you recover and outlive the loan term, Life Credit will work with you on next steps.

Your beneficiaries remain the same — they are not changed. However, when the death benefit pays out, the outstanding loan balance (principal + accrued interest) is repaid first. Your beneficiaries receive the remaining balance. For example, if you had a $200,000 policy, borrowed $100,000, and the loan grew to $120,000 with interest, your beneficiaries would receive $80,000. Life Credit pays all ongoing premiums to ensure the policy never lapses.

Alternatives include:

• Life settlement: Sell your policy for a lump sum — you receive more cash upfront but permanently lose coverage
• Accelerated death benefit: Some policies let you access a portion of the benefit if terminally ill, but amounts are often capped at a lower percentage
• Policy surrender: Cancel the policy and receive its cash value — only works with permanent policies and ends coverage permanently
• Personal/medical loans: Require good credit, income verification, and monthly payments — less accessible for seriously ill individuals

Life Credit's Living Benefit Loan is often the best option for seriously ill individuals because you keep your policy, your beneficiaries are protected, and there are no monthly payments.

Navigating key life insurance terms and definitions 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, and deliver immediate financial assistance in an emergency. Key terms include: death benefit, beneficiary, premium, assignment, and cash value. Contact us for a plain-language explanation of your specific policy.

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. With absolute assignment, all rights of the policy are transferred. With collateral assignment, only the right to receive the death benefit up to the loan amount is assigned — your beneficiaries still receive the remainder. Life Credit uses collateral assignment, so your beneficiaries' interests are protected.