Life settlement describes the sale of a life insurance policy to a third party buyer and receiving a lump sum amount in cash. When a policy is settled, the original owner is no longer responsible for paying the premiums and will not receive any amount on the maturity of the policy. But if the owner wishes to keep the policy and yet have an urgent financial need, the simple solution is to borrow a loan against the policy.

While borrowing a Life Settlement Loan, the borrower has to clearly state the reason for the financial requirement. This is not the case in settlements, as there no questions are asked about the way the money is to be used. Also, the loan will have to be repaid over a period of time, in monthly installments, as the owner will be keeping the policy. The advantage is that the policy will be still the owner