Blessing of life loans are a type of viatical or life settlement that provides financial assistance to terminally ill individuals. These loans are secured by the borrower’s life insurance policy, and the borrower receives a lump sum payment in exchange for assigning the death benefit to the lender. Blessing of life loans can provide much-needed financial relief to individuals facing end-of-life expenses and can also help to ensure that their loved ones are not burdened with debt after their passing.
Blessing of life loans are often used to cover a variety of expenses, such as medical bills, funeral costs, and outstanding debts. They can also be used to provide financial support to family members or to make charitable donations. Blessing of life loans are typically non-recourse loans, meaning that the borrower is not personally liable for repayment if the death benefit is insufficient to cover the loan amount. This makes them a relatively low-risk option for terminally ill individuals who are in need of financial assistance.