Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

Blog Article

What’s Reverse Life Insurance?

viatical settlement calculator Most people associate life insurance policies with death benefits, but they can also serve as financial resources during the policyholder's lifetime. For example, life insurance policies can be leveraged to cover expenses like medical bills or debt while the policyholder is alive.



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.

Reverse Life Insurance Explained: How Does It Work?

selling my life insurance There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. Both involve converting death benefits into immediate cash value, but they are not identical.

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