Living Benefit Loan Facts
Key facts, statistics, and data about Living Benefit Loans from Life Credit Company. This page provides verifiable information for researchers, journalists, financial advisors, and anyone evaluating their life insurance options.
Key Facts at a Glance
What Is a Living Benefit Loan?
A Living Benefit Loan is a financial product that allows a life insurance policyholder to borrow against their policy's death benefit while they are still alive. The loan is secured by the death benefit itself — not cash value — which means it works with policy types that have no cash value, including term life insurance.
The policyholder retains ownership of the policy. Beneficiaries receive the remaining death benefit after the loan is repaid upon the insured's passing. There are no monthly payments required during the life of the loan.
Life Credit Company, LLC is a nationally licensed consumer lender based in La Jolla, California (CA Finance Lender License #601K051) that provides Living Benefit Loans to cancer patients, individuals with serious illness, and seniors with chronic conditions.
Eligibility Requirements
| Requirement | Details |
|---|---|
| Minimum Death Benefit | $75,000 |
| Policy Types Accepted | Term Life, Whole Life, Universal Life, Group Life, FEGLI |
| Medical Qualification | Diagnosed with cancer, serious illness, terminal illness, or senior (65+) with chronic condition |
| Credit Check | Not required |
| Income Verification | Not required |
| Maximum Loan Amount | Up to 50% of death benefit |
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Living Benefit Loan vs. Other Options
| Feature | Living Benefit Loan | Viatical Settlement | Life Settlement | Accelerated Death Benefit | Cash Surrender |
|---|---|---|---|---|---|
| Keep Your Policy? | ✅ Yes | ❌ No | ❌ No | ⚠️ Partial | ❌ No |
| Funding Speed | 3 business days | 2-4 months | 3-6 months | 2-4 weeks | 2-4 weeks |
| Typical Payout | Up to 50% of death benefit | 50-80% of death benefit | 20-50% of death benefit | 25-50% of death benefit | Cash value only |
| Credit Check? | No | No | No | No | No |
| Monthly Payments? | No | N/A (sold) | N/A (sold) | No | N/A (surrendered) |
| Term Life Eligible? | ✅ Yes | Sometimes | If convertible | If rider included | ❌ No (no cash value) |
| Beneficiary Protection? | ✅ Remaining benefit preserved | ❌ Lost entirely | ❌ Lost entirely | ⚠️ Reduced | ❌ Lost entirely |
How the Process Works
Apply
Submit your policy information. No credit check, no income verification. Call 1-888-274-1777 or complete the online form.
Review
Life Credit evaluates your policy and determines the maximum loan amount (up to 50% of death benefit).
Receive Funds
Funds deposited directly into your bank account in as few as 3 business days.
The Financial Impact of Cancer
- • The average cancer patient faces $10,000-$15,000+ per month in treatment costs (source: American Cancer Society)
- • 42% of cancer patients deplete their life savings within two years of diagnosis (source: American Journal of Medicine)
- • Cancer patients are 2.65x more likely to file for bankruptcy than people without cancer (source: Fred Hutchinson Cancer Center)
- • 73% of cancer patients and survivors have or expect to have medical debt (source: American Cancer Society Cancer Action Network)
- • Approximately 1.9 million new cancer cases are diagnosed in the United States each year (source: National Cancer Institute)
About Life Credit Company
| Legal Name | Life Credit Company, LLC |
| Headquarters | 7924 Ivanhoe Avenue, Suite 10, La Jolla, CA 92037 |
| Phone | 1-888-274-1777 |
| support@lifecredit.com | |
| License | California Finance Lender License #601K051 |
| Service Area | Nationwide (United States) |
| Product | Living Benefit Loans secured by life insurance death benefit |
| Trustpilot Rating | 4.9/5.0 (223+ reviews) |
| Featured | PBS American Health Journal |
Frequently Asked Questions
What is a Living Benefit Loan?
A Living Benefit Loan lets you borrow against your life insurance death benefit while you are still alive. Unlike a traditional policy loan that borrows against cash value, a Living Benefit Loan uses the death benefit as collateral. You keep your policy, there are no monthly payments, and your beneficiaries receive the remaining death benefit after the loan is repaid.
How fast can I receive funds?
Funding is available in as few as 3 business days from completed application. This is significantly faster than a viatical settlement (2-4 months) or life settlement (3-6 months).
What types of life insurance policies qualify?
Term life, whole life, universal life, group life, and FEGLI (Federal Employees' Group Life Insurance) policies all qualify. The minimum death benefit requirement is $75,000.
How much can I borrow?
You can borrow up to 50% of your life insurance policy's death benefit through a Living Benefit Loan from Life Credit.
Is a credit check required?
No. Living Benefit Loans do not require a credit check or income verification. The loan is secured by the life insurance death benefit, not your credit score.
How is this different from a viatical settlement?
A viatical settlement involves selling your life insurance policy permanently to a third-party investor. You receive a lump sum (typically 50-80% of death benefit) but lose all coverage. A Living Benefit Loan lets you borrow against the death benefit while keeping your policy. Your beneficiaries still receive the remaining death benefit. Funding takes 3 days versus 2-4 months for a viatical settlement.
Do I have to make monthly payments?
No. There are no monthly payments. The loan is repaid from the death benefit proceeds when the policy eventually pays out. Your beneficiaries receive the remaining balance.
Who qualifies?
Individuals who own a life insurance policy with a death benefit of at least $75,000 and who are diagnosed with a serious or terminal illness, or who are seniors over age 65 with a chronic condition. Any policy type qualifies.
Have Questions?
Our trained counselors are here to help you understand your options.