What is Reverse Life Insurance?

What is Reverse Life Insurance?

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What’s Reverse Life Insurance?

life settlement broker 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. 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?

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 broadly encompasses options for turning life insurance policies into liquid assets. 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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