Permanent life insurance policies don’t just stash away money for your beneficiaries; they reward you with cash value that grows using the same mortality credits the rest of your retirement plan uses.
Although there will be surrender charges for life insurance policies, they all phase out over time because a permanent life policy is meant for the long haul. Most importantly, the growth of the cash value is tax deferred like a 401(k) or IRA, but money can be withdrawn prior to age 59 ½ without a federal penalty. Then, it can be used for college tuitions, dream vacations, or even more life insurance, tax-free!