What is Reverse Life Insurance?

What is Reverse Life Insurance?

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What is Reverse Life Insurance?

life settlement broker 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.



Few people know they can sell their life insurance policy, but this is becoming a more common practice. The term ‘reverse life insurance’ simply refers to the act of turning a policy into instant cash. For those needing a sudden influx of funds, this option could be both viable and lucrative.

Reverse Life Insurance Explained: How Does It Work?

viatical settlement broker 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.

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