Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

Blog Article

What is Reverse Life Insurance?

viaticals Life insurance policies, commonly viewed as a safety net for beneficiaries after the policyholder’s passing, offer more than meets the eye. These policies can act as a financial cushion, covering costs such as medical or debt-related expenses.



The ability to sell a life insurance policy is a rising trend that many are unaware of. Reverse life insurance, or life settlements, lets policyholders transform their policy into cash on hand. This option can be particularly beneficial for individuals seeking immediate financial relief.

What is Reverse Life Insurance? How Does it Work?

selling my life insurance There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. While both entail exchanging death benefits for cash, they differ in scope.

Reverse Life Insurance is an umbrella term covering multiple ways to monetize a life insurance policy. 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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