What is Reverse Life Insurance?

What is Reverse Life Insurance?

Blog Article

Understanding Reverse Life Insurance

viatical settlement Life insurance policies, commonly viewed as a safety net for beneficiaries after the policyholder’s passing, offer more than meets the eye. For example, life insurance policies can be leveraged to cover expenses like medical bills or debt while the policyholder is alive.



The ability to sell a life insurance policy is a rising trend that many are unaware of. The term ‘reverse life insurance’ simply refers to the act of turning a policy into instant cash. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

Understanding How Reverse Life Insurance Functions

viaticals The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. Though related, Reverse Life Insurance and Life Settlements are not synonymous.

As a broad term, Reverse Life Insurance includes various methods of converting a policy into cash. In Life Settlements, the policyholder sells their policy for more than the surrender value but less than the full death benefit.

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