What’s Reverse Life Insurance?

What’s Reverse Life Insurance?

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What’s 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.



Moreover, selling your life insurance policy is a lesser-known but increasingly popular option. 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.

What is Reverse Life Insurance? How Does it Work?

Can I sell my life insurance 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. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

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