What is Reverse Life Insurance?
life settlement calculator 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. 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. The term ‘reverse life insurance’ simply refers to the act of turning a policy into instant cash. This option can be particularly beneficial for individuals seeking immediate financial relief.
Understanding How Reverse Life Insurance Functions
viaticals ‘Reverse Life Insurance’ and ‘Life Settlements’ are terms that many confuse, though they have distinct meanings. Both involve converting death benefits into immediate cash value, but they are not identical.
Reverse Life Insurance broadly encompasses options for turning life insurance policies into liquid assets. 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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