Life Insurance Loan
Borrow only what you need. Keep the rest.
What Is A Life Insurance Loan?
A Life Insurance Loan is a type of loan that provides an immediate cash advance of up to 50% of a life insurance policy’s death benefit, using the policy as the sole collateral for the loan. The lender takes over responsibility for making premium payments and there are no loan payments or out-of-pocket expenses due during the term of the loan. The loan is repaid directly from your insurance policy’s death benefit and any remaining proceeds are paid to your chosen beneficiaries. The Life Insurance Loan program is popular with clients seeking a lower up-front cash payment in exchange for preserving a death benefit for their beneficiaries.
Do You Qualify?
If you have at least $50,000 in eligible life insurance coverage and have been diagnosed with advanced-stage cancer or another serious illness, you may qualify for a Life Insurance Loan. Most life insurance policy types are eligible, including term life, group life, whole life, universal life, flexible adjustable premium life, indexed life, as well as policies issued by FEGLI, VGLI and SGLI.
How To Apply
After our initial consultation we will provide you with a short application form. Once your return the completed application, we will obtain the necessary records from your medical providers and your life insurance company. After reviewing the records, we will complete our underwriting process and start the competitive bidding process with our network of lenders. There are no credit checks or medical exams required. Your eligibility for a loan is determined solely on whether your medical profile and policy qualify. The Life Insurance Loan can typically be funded within 30 days of a completed application.
Benefits Of The Life Insurance Loan
The Life Insurance Loan is our quickest option and is popular with clients who want to preserve a death benefit to pass on to family or friends. Like a Viatical Settlement, there are no restrictions on the use of funds. Whether you choose to use the money for medical expenses, day-to-day bills, or anything else, the choice is yours. The proceeds from the transaction are typically not taxable and payments of principal or interest are not required.