Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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What is Reverse Life Insurance?

viatical settlement 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.



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. This option can be particularly beneficial for individuals seeking immediate financial relief.

What is Reverse Life Insurance? How Does it Work?

viatical settlement The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. 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. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

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