A Living Benefit Loan is a loan from the Life Credit Company that lets you access up to 50% of your life insurance policy’s death benefits today. For instance, if you have a life policy worth $100,000, you can receive up to $50,000 with the policy serving as the security for the loan with no additional collateral.
A Living Benefit Loan is primarily designed for people diagnosed with cancer or any other serious conditions. However, you may apply for the loan to settle your bills, take a dream vacation, or even consolidate your debt.
You may apply for a Living Benefit Loan if you have either of the following life insurance policies:
- Universal life
- Federal Employees’ Group Life (FEGL)
- Whole Life
Note that for you to qualify for a Living Benefit Loan and your life insurance must worth at least $75,000 in coverage.
Once the loan has been disbursed, you are neither required to make monthly repayments as is the case with other conventional loans nor your policy’s future premiums. Your death benefits proceeds will be used to repay the loan with the remaining 50% going to your beneficiaries. Your future premiums will be catered for as well, and you will not have to pay the premiums directly from your pocket.
Why Should You Get a Living Benefit Loan?
Getting diagnosed with cancer or any other chronic condition can be detrimental to your financial status. Many people in such situations end up negating some of their fundamental family responsibilities as they seek to find treatment. Even worse, they opt for affordable treatment options rather than what’s best for their health. Often times, they even end up declaring bankruptcy.
However, with a Living Benefit Loan you don’t have to undergo any of these. Here is why you should consider getting the loan today:
Fast Approval – A Living Benefit Loan is approved within 72 from when a complete application is received. This way, you are guaranteed of getting the money soon enough to take care of your medical needs.
You Won’t Pay More Premiums – All of your life policy future premiums will be paid in full thus helping you concentrate on finding the best treatment options for your condition. In other words, this loan seeks to offer meaningful financial assistance for a cancer patient or any other patient diagnosed with serious illnesses.
Your Credit Standing Will Not Be Vetted – What makes a Living Benefit Loan unique is the elimination of credit checks. Unlike conventional loans, your credit score or lack of constant income are not put into consideration when determining your qualification for the loan.
There are no Spending Restrictions – While the Living Benefit Loan is meant to offload the financial burden faced by cancer patients when it comes to payment of medical bills and buying drugs, you can spend the loan money on other endeavors without financial restrictions.