What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

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Understanding Reverse Life Insurance

viatical settlement calculator 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. 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.

Reverse Life Insurance Explained: How Does It Work?

viatical settlement There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. Both involve converting death benefits into immediate cash value, but they are not identical.

As a broad term, Reverse Life Insurance includes various methods of converting a policy into cash. 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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