Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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What’s Reverse Life Insurance?

viatical settlement broker Most people associate life insurance policies with death benefits, but they can also serve as financial resources during the policyholder's lifetime. For example, life insurance policies can be leveraged to cover expenses like medical bills or debt while the policyholder is alive.



Few people know they can sell their life insurance policy, but this is becoming a more common practice. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. This option can be particularly beneficial for individuals seeking immediate financial relief.

Understanding How Reverse Life Insurance Functions

viatical settlement 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.

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