Why A Life Settlement May Be Better Than Taking A Loan On Your Life Insurance Policy

When it comes to unlocking the value of your life insurance, many seniors are faced with a choice: take a loan against their policy, or sell it through a life settlement. While both options can provide financial relief, a life settlement often offers greater flexibility, transparency, and long-term value.

Understanding The Difference Between A Loan on Your Life Insurance Policy And A Life Settlement

A policy loan requires you to borrow against your life insurance’s cash value—but it must be repaid, with interest. Unpaid loans reduce the death benefit and can even cause the policy to lapse.

In contrast, a life settlement means selling your life insurance policy to a third party for a lump sum—typically far more than the policy’s cash surrender value and this option eliminates ongoing premiums. The proceeds of a life settlement is yours to use however you need: healthcare, retirement, paying off debt, or simply enjoying life.

The Benefits Of A Life Settlement With LifeRoc

• Cash in Hand with No Repayment
  A life settlement gives you an immediate lump sum, and you never owe it back. That’s a major advantage over loans that accrue interest and risk impacting your policy.
• Unlock More Value
  In many cases, selling your life insurance policy yields significantly more than taking a loan or surrendering it. At LifeRoc, we consistently help clients receive exceptional offers by connecting them directly with our large network of funders.
• No More Premiums
  Once your policy is sold, you’re no longer responsible for making premium payments—eliminating a potential financial burden.
• Great Offers, No Middlemen
  LifeRoc is a trusted direct life settlement provider, not a broker. That means no hidden third-party broker commission splits, we eliminate the middlemen—so you, the policyholder, receive the full cash offer your policy deserves.

Why Policyowners and Advisors Trust LifeRoc

LifeRoc is a trusted life settlement resource for seniors nationwide—with over $20 billion in policy value transacted and a network of more than 200 years of combined experience in our careers. Unlike others who may act as brokers or add hidden layers of fees, LifeRoc offers direct access to funders, fast service, and concierge-level support from start to finish.

If you’re considering a loan against your policy, take a moment to compare. A life settlement could put significantly more cash in your hands—without the burden of debt.

Find Out What Your Policy Is Worth

There’s no cost or obligation to find out if your life insurance policy qualifies for a settlement. Get started with a free policy appraisal with LifeRoc today and learn how much more value your policy may hold.