What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

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Understanding Reverse Life Insurance

life settlement While it’s common knowledge that life insurance policies are designed to provide monetary benefits to beneficiaries after the policyholder’s death, these policies also have other versatile uses. For example, life insurance policies can be leveraged to cover expenses like medical bills or debt while the policyholder is alive.



Moreover, selling your life insurance policy is a lesser-known but increasingly popular option. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

Understanding How Reverse Life Insurance Functions

viatical settlement calculator ‘Reverse Life Insurance’ and ‘Life Settlements’ are terms that many confuse, though they have distinct meanings. While both entail exchanging death benefits for cash, they differ in scope.

Reverse Life Insurance broadly encompasses options for turning life insurance policies into liquid assets. Life Settlements, on the other hand, refer specifically to the sale of a policy to a third party for more than its cash surrender value.

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