You may think that life insurance is something that only benefits your friends and family upon your passing. You may be surprised to learn that by purchasing a Whole Life Policy in New Jersey, you can also receive benefits from it while you are still alive. Perhaps most importantly, the premiums you pay into your whole life policy build a cash value over time. Part of your premium goes toward your death benefits and a portion of it is invested. You have the ability to withdraw that cash, and can even do so tax-free as long as the amount you withdraw does not exceed the amount that you have paid in.
In addition, a whole life policy pays dividends. Those dividends never lose their value and are never taxed. Investing in this type of policy also builds equity. You will be able to borrow against its value, and the money that remains behind will continue to earn interest. With other types of policies, your premiums will get costlier as you get older or as your health declines. When you purchase a Whole Life Policy in New Jersey, your premiums are guaranteed and your costs will never rise. It is truly a “win-win” product as you can be assured your loved ones will be provided for in the event of your death and yet you can still benefit from the investment while you are alive.