What is Reverse Life Insurance?

What is Reverse Life Insurance?

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What is Reverse Life Insurance?

viatical settlement calculator 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. These policies can act as a financial cushion, covering costs such as medical or debt-related expenses.



Few people know they can sell their life insurance policy, but this is becoming a more common practice. Reverse life insurance, or life settlements, lets policyholders transform their policy into cash on hand. For those needing a sudden influx of funds, this option could be both viable and lucrative.

What is Reverse Life Insurance? How Does it Work?

viatical settlement broker ‘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 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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