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What is a Fifth Season LILOC?
A LILOC is a Life Insurance Line Of Credit advanced against the face value of your existing group, term, or individual insurance policy. Because it is secured by your life insurance policy, a LILOC requires no payments and may be used for any purpose you choose. This unique credit structure enables you to enjoy some helpful benefits:
- There is no personal liability to repay the LILOC.
- There are no regularly scheduled repayment obligations.
- The LILOC is repaid only from the proceeds of your life insurance policy.
- No credit history review or creditworthiness standards are required.
- The LILOC is structured as a line of credit, and you may draw the available credit in a lump sum, or as needed over time.
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How is the amount of the LILOC determined?
The actual amount you may access is based on several factors, including:
- The size of the life insurance policy.
- The projected remaining life expectancy of the insured.
- The policy premium amounts payable in the future.
Once we consider all the appropriate factors, the funds you may receive are generally between 35% and 75% of the policy face amount.
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How is projected remaining life expectancy established?
Independent physicians specializing in oncology review your medical records and advise Fifth Season as to your medical condition and projected remaining life expectancy. However, no physical examinations are required. All medical information is furnished by your attending physician.
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What if my projected remaining life expectancy changes?
If you encounter a more rapid disease progression, the LILOC amount may be increased. Should your medical condition unexpectedly improve or stabilize, your Fifth Season LILOC is not affected.
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Are there fees associated with a LILOC?
There are no application fees. However, if you accept the LILOC offer, an origination fee equal to 3.0% of the face amount of your existing life insurance policy is applied to your LILOC.
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Who pays the premiums on my life insurance policy?
Once the LILOC has been accepted, Fifth Season will advance funds to your insurance company on your behalf to ensure the timely payment of your life insurance policy premiums.
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Is anyone in my family responsible for repayment of LILOC advances, fees, premiums, or interest?
Neither you nor any member of your family is under any obligation to repay funds or make monthly payments - period. Upon policy maturity, all advances plus applicable interest and fees are automatically repaid to Fifth Season from your life insurance proceeds. Under no circumstances will Fifth Season have any right to collect amounts beyond your life insurance policy proceeds.
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Are there restrictions on my use of LILOC proceeds?
No restrictions are placed on the proceeds. You may use the advanced funds for any purpose you wish.
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Are there restrictions on the types of life insurance policies Fifth Season will accept?
There are several requirements regarding the eligibility of your life insurance policy:
- You must have one or more incontestable life insurance policy with a face value of $10,000 or more.
- Your life insurance policy must be issued by an insurance company that has a high claims paying solvency rating, and the life insurance policy must be assignable. (Most life insurance policies meet these requirements.)
- Your life insurance policy must be incontestable (usually two years from issue date).
- Your life insurance policy may be individual or group term coverage. (No cash or surrender value is required.)
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Who will have access to my medical information?
All information concerning your medical condition will remain strictly confidential. Our handling of your medical information is compliant with HIPAA, the Health Insurance Portability and Accountability Act.
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What if I'm unemployed or don't have a good credit rating?
Your creditworthiness, repayment ability, and employment status are not factors that we consider. We consider only your medical history and your life insurance policy coverage.
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What happens after my LILOC eligibility is established?
Once your medical and life insurance information has been collected and evaluated and your eligibility is established, Fifth Season will work with you to design a LILOC that meets your needs. If you approve the LILOC offer, closing paperwork will be sent to you to review, sign, and return.
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How will I receive my LILOC funds?
The LILOC credit agreement allows you to access any or all of your credit line immediately in one lump sum, or in increments. The way you receive your advanced funds is just as flexible - either by check or direct wire to your bank.
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How do I get the LILOC process started?
If you are ready to begin the Fifth Season LILOC process now, it will only take you a few minutes to complete our online Information Release Form. Or, if you have more questions about qualifying, call us toll free at 1.866.459.1271 or send us an e-mail and a helpful LILOC Counselor will get in touch with you at your convenience.
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