Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

Blog Article

What’s 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. Ensuring medical or debt-related costs are handled is just one way these policies can provide a safety net during challenging times.



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. For those needing a sudden influx of funds, this option could be both viable and lucrative.

Reverse Life Insurance Explained: How Does It Work?

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. 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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