Understanding Reverse Life Insurance

Understanding Reverse Life Insurance

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What is 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.



Moreover, selling your life insurance policy is a lesser-known but increasingly popular option. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

What is Reverse Life Insurance? How Does it Work?

viatical settlement broker The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. Both involve converting death benefits into immediate cash value, but they are not identical.

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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