Understanding Reverse Life Insurance

best life settlement company Most people associate life insurance policies with death benefits, but they can also serve as financial resources during the policyholder's lifetime. Ensuring medical or debt-related costs are handled is just one way these policies can provide a safety net during challenging times.



Few people know they can sell their life insurance policy, but this is becoming a more common practice. Reverse life insurance, or life settlements, lets policyholders transform their policy into cash on hand. For those needing a sudden influx of funds, this option could be both viable and lucrative.

Understanding How Reverse Life Insurance Functions

life settlement calculator 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.

Reverse Life Insurance is an umbrella term covering multiple ways to monetize a life insurance policy. 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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