Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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Understanding Reverse Life Insurance

viatical 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. 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. 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.

Understanding How Reverse Life Insurance Functions

viatical settlement broker There’s a common misconception that ‘Reverse Life Insurance’ and ‘Life Settlements’ are the same, but they differ. 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. 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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