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. These policies can act as a financial cushion, covering costs such as medical or debt-related expenses.



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

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