Check my policyHome / Sell my policy / Policy with a loan
You can usually sell an insurance policy that has a policy loan on it. The loan and its interest stay with the policy, so a buyer takes them off the price, the same way your insurer takes them off a surrender value.
Last reviewed 15 October 2026
Four things to know before you ask for an offer.
It is secured on the policy's cash value, not on you. After a sale, it is the new owner's to repay or to have deducted from the payout.
We start from your net surrender value, which already has the loan and interest taken off, and show the deduction on the offer.
Unpaid interest is usually added to the loan. An old statement may understate what is owed today.
If the loan and interest are close to the cash value, there is little left to pay for, and the policy may be near termination. How policy loans work
Our view: in most cases, sell with the loan in place.
Simplest, and needs no spare cash. The price is lower by roughly what you owe, so you end up in about the same place as repaying first.
Only worth it if the loan is close to the cash value and a sale would otherwise fall through, or if your insurer will not record an assignment while the loan is outstanding.
Ask your insurer for a dated statement showing the loan, the interest and the net surrender value on the same day.
Loan and interest, from your insurer's statement or app.
Your insurer sets it and can change it. It decides how fast the debt grows.
Premiums the insurer paid for you by loan count too. Policy loans and arrears
So the offer and the insurer's records match on the day of the assignment.
Usually, yes. The loan stays with the policy and the price reflects it. We confirm with your insurer before we make an offer.
The new owner. It is repaid directly or taken off the maturity payout, surrender value or death benefit.
By about the amount owed, the same as with a surrender. It doesn't usually change whether we would buy the policy, unless the loan is very large.
A surrender clears it too, by deducting it. Compare the net surrender value with a written offer and take the higher. Sell or surrender?
Tell us the loan balance along with the policy details. No NRIC, no obligation.