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Life Policies May Back Lines Of Credit

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NU Online News Service, May 6, 2004, 3:43 p.m. EDT – Ramp Corp., New York, has set up a new unit that plans to help people with cancer use qualifying life insurance policies to secure lines of credit.[@@]

The new LifeRamp Family Financial Inc. unit also will make policy-secured lines of credit available to relatives of people with cancer, Ramp says.

Ramp’s LivingChoice program will set up lines of credit with a value of up to 75% of the face value of qualifying term life or whole life policies. Eligibility will be based solely on the insured’s medical diagnosis and the terms of the life insurance policy, Ramp says.

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Borrowing against the line of credit should not jeopardize eligibility for government assistance programs or generate taxable income, Ramp says.

Ramp hopes to introduce the LivingChoice credit program in many states by Sept. 30.