What is a Life Insurance Advance?
A life insurance advance gave us the money we needed during our darkest hour. I will be forever grateful.
Insured: Male Age 72
Life Insurance Amount: $500,000
Life Insurance Advance of $175,000
A 72 year old man with a terminal illness decided on some alternative treatments that were not covered by his health insurance policy. The cost of alternative treatments is often not covered and is an out of pocket expense. He needed cash to maintain control of the direction and quality of his care.
A review of his insurance policy and health records showed that he would qualify for a life insurance advance. He was able to get the $175,000 advance he needed to cover the cost of his treatments, travel or any other expense he would incur. He kept his beneficiaries the same and still owns the life insurance policy.
When he passes away his beneficiaries will receive the death benefit once the lump sum cash advance, future advanced premiums, fees and interest are deducted. The longer he lives, the less his beneficiaries will receive because of the premiums that need to be paid and interest.
If he survives much longer than anticipated he is under no obligation to make future premiums or pay back the advance other than from the proceeds of his insurance policy.
About a Life Insurance Advance
What can you do if you are chronically ill, need money to pay for medical expenses, and do not qualify for disability benefits?
Well, if you own a life insurance policy, you could be able to get the help you need by borrowing against your life insurance.
A life insurance advance, which is a type of life insurance loan, is offered in the secondary market for life insurance. This type of loan can help cover out of pocket medical expenses and take away some of the anxiety you might be feeling due to your medical condition. The last thing you need to do when you are not feeling well is to have to worry about how you are going to be able to pay your bills.
A life insurance advance is quite different from an accelerated death benefit through your life insurance company. It is also quite different from a cash buyout from a viatical settlement company in the secondary market for insurance. You do not have to give up ownership of your policy, be terminally ill (life expectancy of 24 months or less), or have a rider written into your insurance policy.
Individuals who are in declining health and who have a life expectancy greater than two years can benefit from a life insurance advance.