What is Reverse Life Insurance?

What is Reverse Life Insurance?

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What is Reverse Life Insurance?

viatical settlement broker Life insurance policies, commonly viewed as a safety net for beneficiaries after the policyholder’s passing, offer more than meets the eye. These policies can act as a financial cushion, covering costs such as medical or debt-related expenses.



The ability to sell a life insurance policy is a rising trend that many are unaware of. Referred to as ‘reverse life insurance’ or ‘life settlements,’ this process essentially converts a policy into immediate cash value. For those needing a sudden influx of funds, this option could be both viable and lucrative.

Understanding How Reverse Life Insurance Functions

viatical settlement The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. Though related, Reverse Life Insurance and Life Settlements are not synonymous.

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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