Financial assistance for cancer patients is just 3 simple steps away
Regardless of what type of life insurance policy you own, if you have at least $75,000 of coverage you may be eligible for our life insurance loan program. We specialize in providing financial aid for cancer patients and helping other seriously ill patients through our Living Benefit Loan program. Here are some of the types of life insurance policies that we accept:
– Term Life Insurance – Group Life Insurance – FEGLI (Federal Employees’ Group Life Insurance) – Whole Life Insurance – Variable Life Insurance – Universal Life Insurance
We provide financial help for cancer patients and others who have been diagnosed with a serious illness. You may be eligible for a Trust Life Loan. Some of the patients we work with include:
– Cancer Patients
– Seniors with Chronic Disease
– ALS Patients
– Alzheimer’s Patients
– Congestive Heart Failure Patients
– Stage IV Renal Failure Patients
– End-stage Liver Disease Patients
There are several alternatives to selling your life insurance policy, the most common are:
Taking advantage of a policy’s accelerated death benefit.
Borrowing against a policy’s cash value.
Stopping payments to receive the policy’s surrender value.
Below, we’ve outlined those alternatives in more detail. It is important to note that while all of these are viable options, selling your life insurance policy will put more cash directly into your pocket.
Accelerated Death Benefit
An accelerated death benefit (ADB) refers to a rider that can be added to a policy that allows the policyholder to receive a portion of the death benefit while they are still alive. The ADB is sometimes referred to as a “living benefit.”
Borrow Against Life Insurance
If you still want your policy but need cash now, you can borrow against your life insurance policy. In this sort of transaction, you are borrowing a portion of your policy’s cash value with the expectation that you will pay it back.
As with all loans, you will be charged interest (which is often also taken from the policy’s cash value).
Any outstanding amount at the time of your passing is subtracted from the death benefit paid out by the policy.
Surrendering Policy
When you surrender your life insurance, you stop paying your premiums and tell the insurance company that you no longer want or need life insurance coverage. After you surrender your policy, you’ll receive a portion of the cash surrender value of the policy.
As we mentioned above, the surrender value is almost always lower than the amount received in a life settlement.
In summary, to be eligible to sell your life insurance policy, it is best to be over 65 years of age or have a serious medical condition and own a permanent (or convertible) life insurance policy that has a face value of at least $75,000.
The amount of money you will receive from a life settlement payout depends on the size of the death benefit, the cost of the premiums, and the life expectancy of the insured.
Life settlement providers look at these factors to determine how much it will cost to keep the policy active (known as the in-force illustration) and how much they will receive when the seller passes away.
Providers use a mathematical model to figure out the amount they can pay the policyholder and still receive a sufficient return from purchasing the policy.
Let’s walk through each one of these factors to see how they influence a policy’s valuation.
Size of the Death Benefit
The larger the death benefit, the larger your payout will be. This is because the purchaser will receive the death benefit when you pass away, so they’re willing to pay more for it.
Cost of the Premiums
When you sell your policy, the purchaser continues to make all premium payments. So, if your premiums are relatively low compared to your death benefit, your payout will be more substantial.
Life Expectancy of the Policyholder
It is a morbid thought, but policies are worth more to life settlement companies if the policyholder has a short life expectancy. The reason for this is because if the policyholder passes away sooner, the purchaser will have to make fewer premium payments before receiving the death benefit.
To estimate a policyholders life expectancy, life settlement providers collect medical records through HIPAA release forms. With medical records, they can perform a medical underwriting to estimate the life expectancy of the policy owner.
The policy owner has to give the provider permission to obtain the necessary information to create life expectancy projections.
The best way to estimate your policy’s cash potential is to use our life insurance settlement calculator.
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