Thanks all for your replies. I looked into it a bit more and discovered that it would actually not be possible to do any kind of rollover unless I were to rollover into another life insurance policy or maybe an annuity.
However, it also seems that the tax penalties for cashing out these policies are also usually fairly low, since most of the time you only pay tax on any capital gains since policies are purchased with after-tax dollars -- *I am parroting other forum posts here, so please do not go off of this 100% without doing your own research, but that's what I have been able to gather from other posts*.
So...I think we'll just cash out, take the check (or electronic transfer as one responder mentioned -- will look into that) and put it into an index fund.
Although $60k would not be insignificant in the possible event of tragedy right now, I feel quite a bit more peace of mind putting the $7k into an index fund with the knowledge that it will likely grow to 50-100x that amt by the end of my life, assuming I don't die prematurely.
If anything weird comes up during the process, I'll share details here. Thanks again all for your input!