Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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What is 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. Reverse life insurance, or life settlements, lets policyholders transform their policy into cash on hand. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

Reverse Life Insurance Explained: How Does It Work?

selling my life insurance ‘Reverse Life Insurance’ and ‘Life Settlements’ are terms that many confuse, though they have distinct meanings. 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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