What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

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Understanding Reverse Life Insurance

best life settlement company Most people associate life insurance policies with death benefits, but they can also serve as financial resources during the policyholder's lifetime. Ensuring medical or debt-related costs are handled is just one way these policies can provide a safety net during challenging times.



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. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

What is Reverse Life Insurance? How Does it Work?

viatical settlement calculator 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.

Reverse Life Insurance is an umbrella term covering multiple ways to monetize a life insurance policy. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

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