How Whole Life Insurance Policies Work

A whole life insurance policy is one of the two main types of life coverage. When you have a whole life policy, you’re very well protected in case the worst should happen. Many people choose this type of policy for its many benefits. If you want a life insurance policy, contact us at The Insurance Outfit in Chester, NJ, to learn more. 

No Expiration

When you have a whole-life policy, it never expires. Unlike a term life policy, a whole life policy will stay good if you want to keep paying for it. If you’re making payments as agreed, there’s no way to cancel the policy. Having no expiration date should give you good peace of mind. You’ll know that you always have the policy and that you’ll never need to get another one. 

Cash Value

Another perk of this type of life insurance is that it builds up what is referred to as a cash value. As you pay your premiums, the money that the insurance company gets is invited for profit. A small percentage of that money is allocated to your insurance when there are profits. It works by building up a fund you can borrow if you ever need to. This is another way to get peace of mind. You’ll know that those funds are available for you to borrow in the face of a financial emergency. The amount borrowed is paid back just like any other loan. If you pass away before the loan is paid back, the owed amount is deducted from the policy’s death benefit. 

Find Out More About Whole Life

If you need a life insurance policy, we can help. Just call us at The Insurance Outfit in Chester, NJ.