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Cancer Loan: Using a Life Insurance Policy vs. Credit Cards

Every cancer journey begins with symptoms and a diagnosis, and from that point things quickly grow out of control. Suddenly you’re no longer in control of your life, and find yourself simply following instructions about appointments that need to be made, tests that need to be submitted to, cancer treatments that need to be scheduled. Though you may spend your private time wondering how you got her, or why me, or commiserating or gaining strength from friends and family, the majority of your time will be spent on planning or undergoing cancer treatments, or waiting to see whether they were successful. Because a cancer patient’s focus is on their health and what they can do to improve it, little time is spent thinking about how to pay for cancer treatments, medications and keep up with your regular daily living expenses – and then the bills start to arrive, and you’re faced with a whole new dilemma.

Financial Assistance for Cancer

When trying to find financial assistance for cancer, you’ll quickly see that medical bills that accompany cancer treatment are rarely moderate. Depending upon the type of advanced cancer that you have and the range of protocols that have been used, you are likely to receive medical bills for cancer diagnostics, for the services of your general practitioner as well as your oncologist, hospital bills, medical bills for chemotherapy, radiation therapy, surgery, anesthesia, and more. Most cancer patients quickly deplete their cash reserves trying to keep up with their medical expenses of cancer treatments, and once dunning notices start arriving in the mail and the calls start coming from collectors, they find themselves investigating how to borrow against a life insurance policy with a cancer loan.

Paying for Cancer Treatments with Credit Cards

It is tempting to use your credit cards to pay for cancer treatments, but financial experts are emphatic in advising against doing so, and offer several better options. There are a number of reasons why paying your cancer bills with your credit card is a bad idea, including the fact that if you don’t pay the full balance in the month that you’ve put the charge on the card, you will be subject to interest, and most credit card interest rates are extremely high. Though there may be a possibility of taking advantage of promotional periods of zero interest or balance transfers, it is important to remember that balance transfers come with high fees, and promotional periods are generally too short-lived to offer a benefit when it comes to the extremely high bills that come with cancer treatments. Further, failure to pay credit cards in a timely way can have an impact on your credit rating, and this can have a long-term impact on your ability to make major purchases or to borrow money in the future.

How to Pay for Cancer Bills and Treatments

There are much better options for financial assistance for cancer patients than putting their expenses on a credit card, and more reasonable methods of approaching medical debt. One of the most important things to remember is that hospitals and medical providers are aware of how impactful their bills are to an average person, and are generally willing to offer long-term payment plans at zero percent or low interest for cancer patients. They also are frequently willing to accept partial payments or to negotiate lower payments if you meet their criteria for financial assistance, and many of them have special programs for those who are struggling with cancer debt. Perhaps most importantly, medical facilities rarely report patients’ debt to the credit rating agencies as long as some kind of discussion has taken place and a payment plan is in place.

Can I Use My Life Insurance Policy to Get a Loan for Cancer?

Another option that is available to those who have been diagnosed with advanced stage cancer is to take out a cancer loan, also called a life insurance loan, where your life insurance policy is used as collateral to back the loan. These cancer loans provide funds from the death benefit of the policy that you’ve been paying for over the last several years, and when you sign up for a cancer loan, the lending company assumes the costs of your future premium payments — one less bill for you to worry about. The companies place no limitation on what you use your money for, which means that you can use it to pay down cancer bills or for any other expense that you choose, while still preserving the balance of the value for your beneficiaries. In addition, you can get a life insurance loan regardless of your credit score or income, as long as all other requirements are met and your case qualifies for the program.

A cancer diagnosis does not necessarily mean that you’re also facing a sentence of endless cancer bills. A cancer loan provides you with the ability to pay your medical bills without worry and without fear of high interest rates or increasing your level of financial stress.

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