What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

Blog Article

What’s Reverse Life Insurance?

viaticals 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. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

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. 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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