Understanding Reverse Life Insurance

selling my life insurance 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. 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?

life settlement broker The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. While both entail exchanging death benefits for cash, they differ in scope.

Reverse Life Insurance is an umbrella term covering multiple ways to monetize a life insurance policy. By contrast, Life Settlements focus on selling the policy for an amount between its surrender value and death benefit.

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