Life Insurance Loans
Get an advance on your life insurance
A Life Insurance Loan offers policy holders a unique opportunity to get cash from their insurance policy right away to cover medical expenses, unexpected expenses, or even traveling with family or friends. Unlike a viatical settlement or a life settlement, the policy owner retains ownership of the policy and the policy beneficiaries can receive a portion of the policy once the loan is settled.
Advantages of a Life Insurance Loan
An advance against your life insurance, or life insurance loan offers several unique advantages over other life settlement options.
- All types of life insurance qualify: term, universal, whole life, variable, and even group policies
- The loan does not require cash value in the policy. Only the death benefit is considered
- Most individuals who have recently had a major slippage in health qualify
- Beneficiaries are not required to be terminally ill
- No out of pocket costs
- No more insurance premiums to pay
- Premium or Interest Loan payments are not required during your lifetime
- The entire cost of the loan is paid back from the death benefit of the policy
- All life insurance premiums are paid by loan company while you are still living
- Your personal credit score is not considered during approval
Eligibility for Life Insurance Loan
Qualifying for a life insurance loan is very different to the process to qualify for a normal loan. Often clients who are interested in a life insurance loan have recently incurred unexpected medical expenses and that may have adversely affected their credit. When applying for a life insurance loan, your personal credit is not taken into consideration. The life insurance policy is used as a guarantee and the loan is written as a secured loan.
Loan Approval Process
- Policy holder age and health
- Amount of death benefit
- Cost of premium payments
- Life Expectancy of Owner