When facing mounting debt, some cancer patients and their families may begin to explore the best way to convert life insurance into cash and supplement their dwindling income. Some consider taking advantage of a life insurance conversion credit and switching their policy from term life to whole life, others explore medical and cancer loan options.
Medical emergencies or cancer treatments often leave people unable to work or forced to work fewer hours, leading to reduced pay. Paying necessary bills like mortgage or rent become a major roadblock to recovery. On top of shifting lifestyle changes, cancer, serious illness, and many medical conditions often come with hefty price tags. If you are in need of financial assistance, how can you convert life insurance into cash and get relief from a financial crisis?
1. Use your policy’s benefit riders.
Life insurance is generally considered a way to protect one’s assets and beneficiaries after death, but in some cases, its value can be maximized while a person is still living. If your policy contains a benefit rider, such as accelerated death, accidental death, or disability income, then your insurance company may allow you to draw cash advances from the amount you have paid into a policy. The type of policy you have will play a major role in how you can convert your life insurance policy into cash. Cash advances and allowances are typically only used for permanent, or whole life policies.
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2. Take advantage of a term life insurance conversion credit
If you have a term life insurance policy you may consider asking your insurance company about a life insurance conversion credit and switching to a whole life policy so you can more easily access funding for cancer treatments and other serious illnesses. Whole life insurance policies may result in higher premiums, which could be an obstacle for those already dealing with increased medical costs. Learn more about the difference between term and whole life insurance.
3. Check out the benefits of a Living Benefit Loan
Life Credit takes a different approach to provide financial assistance to cancer patients. Whether you have term life insurance or whole life insurance, as long as the person seeking financial help is facing cancer, or another serious medical condition, and has more than $100,000 in life insurance coverage, he or she can access up to half of their policy’s death benefit to deal with financial challenges with a Living Benefit Loan.
Navigating the complexities of converting term to whole life may add a layer of stress, which is likely the last thing someone facing a serious medical challenge needs. Call Life Credit at 888-274-1777 and discover how we can connect policyholders with their money in just days—freeing up their time to focus on healing.