Best Life Insurance Companies in Camden

Frequently Asked Questions

• Can you withdraw money from your whole life insurance policy in Camden?

  Yes, you can withdraw on your whole life policy, not exceeding the amount of premiums paid tax-free. However, it may reduce your death benefit. Withdrawals over the amount of total premiums can be taxed in Camden. Consider taking out a loan against the cash value of your insurance policy if you require additional money.

• Can you sell your life insurance policy in Camden if you don’t need it anymore?

  Yes. The sale involves entering into a viatical settlement with the buyer in which the buyer assumes payment of your upcoming premiums and receives the insurance proceeds upon your death. Policyholders enter viatical settlements, develop a life-threatening medical condition, are in need of immediate cash, or no longer need coverage. Before selling, consider other options, like surrendering the policy for cash. Also, consult a Camden financial expert about fair pricing and the tax implications of the sale.

• Who will pay your death benefit if your life insurance company in Camden becomes insolvent?

  The New Jersey Life & Health Insurance Guaranty Association will pay the death benefit of policyholders if their insurer closes business. However, the amount paid will be limited to a maximum of $500,000 for the death benefit and up to $100,000 in cash surrender value. The Guaranty Association may also transfer your policy to another solvent insurer in Camden. Thus, you should keep your premium payments up to date throughout this process to keep your coverage active.

• Is there a grace period for missed life insurance premium payments in Camden?

  Yes. The New Jersey Statutes Section 17B:25-3 requires life insurance companies in Camden to provide policyholders with a minimum of a 30-day grace period after a missed payment. You must pay your overdue life insurance premium within 30 days to avoid your policy lapsing. Your coverage remains active during the grace period.

• Will life insurance companies in Camden pay the death benefit if the insured dies of suicide?

  It depends. Most life insurance companies in Camden enforce a suicide clause, which indicates nonpayment of the death benefit if the insured passes away due to suicide during the contestability period. The insurer would instead refund the policy’s cost. If the suicide, including physician-assisted suicide, occurs after the contestability period, the insurer may pay the death benefit.

• Which is better, term or whole life insurance?

  Life insurance is a personal financial tool, so the right type of insurance for you depends on your goals and current situation. One of the main differences between term life insurance and whole life insurance is that term life insurance only covers you for a set period of time. Once you meet the premium payment requirements on a whole life plan, it covers you for the rest of your life. Whole life insurance also builds cash value, making it a potential investment. But whole life insurance is typically much more expensive than term life insurance.

• How much life insurance do I need?

  A common recommendation is purchasing life insurance that is equal to five times your current salary, or more. But you can also estimate how much life insurance you need by adding up your debts, annual expenses for dependents multiplied by the years you want to ensure support, and any other items you wish to cover, such as a future wedding or college tuition.