What is Reverse Life Insurance?

What is Reverse Life Insurance?

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Understanding 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. 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. The term ‘reverse life insurance’ simply refers to the act of turning a policy into instant cash. This option can be particularly beneficial for individuals seeking immediate financial relief.

Reverse Life Insurance Explained: How Does It Work?

best life settlement company There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. 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. 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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