What is Reverse Life Insurance?

What is Reverse Life Insurance?

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What’s Reverse Life Insurance?

viatical 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.



The ability to sell a life insurance policy is a rising trend that many are unaware of. The term ‘reverse life insurance’ simply refers to the act of turning a policy into instant cash. Converting a policy to cash can be an ideal choice for those requiring immediate financial assistance.

Understanding How Reverse Life Insurance Functions

life settlement calculator The terms ‘Reverse Life Insurance’ and ‘Life Settlements’ are often used interchangeably, leading to confusion. Both involve converting death benefits into immediate cash value, but they are not identical.

As a broad term, Reverse Life Insurance includes various methods of converting a policy into cash. 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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