What Are Advanced Benefit Policy Loans?

While life insurance policies provide valuable security for your survivors by providing death benefits, they are also valuable personal assets that can provide additional security by serving as collateral or funding sources for loans that may be required to meet your immediate financial needs today.

Some life insurance policies offer Accelerated Death Benefit Riders that enable qualified insureds to borrow limited amounts directly from the insurance company. Upon the insured’s passing, the loan is then repaid using the death benefit proceeds with any remainder going directly to the policy beneficiaries.

For policy owners who do not qualify for any Accelerated Death Benefit per the terms of their individual policy, we offer Advanced Benefit Loans through secondary market lenders provide another option to secure cash. These loans provide policy owners living in Seattle, Bellevue, Tacoma, and other areas of the northwest immediate access to substantial amounts of cash (up to a maximum of either 50% of the total death benefit, or $500,000, whichever is less) with no upfront expenses or repayment obligations. These unrestricted funds are then immediately available to ease financial hardships or fund life enrichment for themselves or family members. And you don’t have to give up ownership of your policy or pledge additional collateral to qualify.

While there are costs associated with these loans including origination and brokerage fees, and accrued interest, all costs are repaid using the life insurance death benefit proceeds upon passing of the insured, with any remainder again going directly to the policy beneficiaries.

Advanced benefit loans provide another great option for those late in life to secure the financial freedom they desire today, while at the same time retaining a portion of the death benefit for their beneficiaries for tomorrow.


  1. Replace lost income
  2. Restore your savings
  3. Pay your medical bills or improve care
  4. Purchase gifts for loved ones
  5. Take that dream vacation or other life enrichment

Learn More About Advanced Benefit Loan Policies

Why Advanced Benefit Policy Loans?

Leverage An Asset for Cash When You Need it Most

When the decision to purchase life insurance is made, it is normally made for all the right reasons – either to provide a measure of financial security for your family after you are gone, to build or transfer tax-advantaged wealth, or to cover end-of-life expenses and minimize estate taxes. But life is often unpredictable and can drastically change your original plans and immediate financial needs.

Medical expenses, debt obligations, financial crisis, new investment opportunities, or the desire to make immediate financial gifts or charitable contributions can greatly change the need for unrestricted cash today as opposed to death benefits for tomorrow.

Borrowing against your life insurance policy through an Advanced Benefit Policy Loan, can be a great solution for policy holders to access cash today to utilize as they see fit to improve their overall quality of life, while at the same time enabling their beneficiaries to retain a portion of the death benefits.

Who Qualifies For An Advanced Policy Benefit Loan?

While each case is unique and evaluated individually, to be eligible for an Advanced Benefit Policy Loan, candidates must meet the following criteria:

  • Hold an active in-force life insurance policy with a death benefit of at least $100,000
  • Facing some degree of health impairment with life expectancy of 8 years or less
  • Applicants will not be rejected for lack of income, poor credit history, or previous bankruptcy

To find out if you qualify, contact Life Settlements Northwest today to for a complimentary assessment to explore if and how an Advanced Benefit Policy Loan might help you get the cash you need. We can even help you with the proper filing of any benefits available via your accelerated death benefit rider.

Qualifying Policies

  • Universal Life
  • Whole Life
  • Variable Universal Life
  • Survivorship (any type)

Helpful Articles

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Take The Next Step Today

To find out if you qualify for an advanced benefit policy loan, please complete our brief 5 minute questionnaire.