Most people facing a serious illness think they have to sell their life insurance policy to access cash. They don't. A Living Benefit Loan lets you borrow against your death benefit — and keep your policy in force for your family.
A life settlement is the sale of a life insurance policy to a third-party investor. The policyholder receives a lump sum — typically 20% to 40% of the death benefit — and the buyer takes over the policy, pays the premiums, and collects the full death benefit when the insured passes away.
People consider life settlements for understandable reasons. They're facing mounting medical bills. They can't afford premiums anymore. They need cash to cover the costs of treatment, pay the mortgage, or simply maintain their quality of life during a devastating health crisis.
But what most people don't realize is that selling your policy means permanently giving up your coverage. Your beneficiaries — the people you bought the policy to protect — receive nothing. And once the sale is final, there's no going back.
A Living Benefit Loan allows you to borrow against your life insurance policy's death benefit — without selling it. You receive a lump sum of cash, typically up to 50% of your death benefit, and the loan is repaid from the death benefit when you pass away.
The key difference: you keep your policy. Your beneficiaries still receive the remaining death benefit. You don't transfer ownership to a stranger. And you get the cash you need to cover medical bills, replace lost income, or simply live your life on your terms.
Life Credit has provided over $175 million in Living Benefit Loans since 2012. We work with cancer patients, people with ALS, heart failure, Alzheimer's, and other serious conditions. Our process takes as little as 3 days from application to funding.
Your life insurance stays in your name. No ownership transfer. No third-party investor taking control of your coverage.
The remaining death benefit still goes to your family. You're borrowing against it, not giving it away.
Most Living Benefit Loans fund within 3-5 business days. When you're facing a health crisis, speed matters.
The loan is repaid from the death benefit. There are no monthly payments, no income requirements, and no credit checks.
Find out how much you can access — no obligation, no credit check.
Here's how the two options compare side by side.
| Feature | Life Settlement | Living Benefit Loan |
|---|---|---|
| Policy Ownership | Transferred to buyer | You keep it |
| Death Benefit for Beneficiaries | None — goes to investor | Remaining balance preserved |
| Typical Payout | 20-40% of death benefit | Up to 50% of death benefit |
| Speed | 2-4 months typical | As fast as 3 days |
| Monthly Payments | None (but policy is gone) | None — repaid from death benefit |
| Credit Check Required | No | No |
| Reversible | No — permanent sale | Policy remains yours |
| Third-Party Involvement | Investor owns your policy | No third-party ownership |
| Who Qualifies | Generally 65+ or ill | Cancer or serious illness diagnosis |
Living Benefit Loans are available to policyholders who have been diagnosed with cancer or another serious illness. To qualify, you generally need:
Most types of life insurance qualify — whole life, universal life, term life, group policies, and FEGLI. There's no income requirement, no credit check, and no employment verification. The loan is secured entirely by the policy itself.
Find out how much cash you can access from your life insurance — no obligation, no credit check, funding in as few as 3 days.
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