What Is Reverse Life Insurance And How Does It Work? 
Reverse Life Insurance is a life settlement in which the policy holder `` sells '' his policy for cash . In order to be considered for a reverse life insurance transaction , the insured person must show probability of a short life expectancy -LRB- very poor health or very advanced age -RRB- , and the policy must have indications that it would have value to the person -LRB- s -RRB- buying it -LRB- increasing cash value and/or enough years left that death is almost certain to occur before the policy ends -RRB- . 