Building Wealth Through Insurance
Life insurance is not just for when you die—it can help you build wealth too!
102 million Americans
are uninsured or underinsured.
Choice Mutual, 2023
How Much Life Insurance Coverage Is Right for You?
- Long-Term Obligations: Enter your total outstanding loans and debts
- Income: Enter your annual income
- Final Expenses: Enter an estimate of your final expenses
- Emergency Fund/Education Expenses/Estate Planning: Enter additional funds for emergency, education, or estate planning
- Current Life Insurance Coverage: If you have an existing policy, enter its death benefit or face amount.
Term Life vs. Permanent Life: Which one is better?
Term Life Insurance
Think of it like renting—you have coverage for as long as you pay, but there’s no long-term investment.
- NCoverage for a set period (10, 20, 30 years).
- NTypically lower premiums.
- NNo cash value—coverage ends when the term expires.
- NIdeal for temporary needs, such as paying off a mortgage or covering income during working years.
VS
Permanent Life Insurance
Think of it like owning a home—more costly, but you build value that grows with time.
- NLifetime coverage as long as premiums are paid.
- NHigher premiums than term policies.
- NBuilds cash value over time, which you can borrow against or use for other purposes.
- NIdeal for long-term needs, such as estate planning or leaving a legacy.
So which one should I get? Which one is better?
There’s no right or wrong choice—it’s possible you might even need both!
Remember, there’s no one-size-fits-all solution in life insurance.
Ready to find out what policy works best for you? Let’s explore your options together.
| Types of Life Insurance | Features | Benefits | Limitations |
|---|---|---|---|
| Term |
• Coverage for a specific period (e.g., 10, 20, 30 years) • No cash value accumulation • Provide temporary coverage |
• Affordable premiums • High coverage amount for lower cost |
• No payout if you outlive the term • Renewing after the term can be costly |
| Whole Life |
• Fixed premium amount throughout the policy • Guaranteed death benefit • Lifelong coverage |
• Builds cash value over time • Cash value grows at a guaranteed rate • Can borrow against the cash value |
• Higher premiums compared to term insurance • Cash value growth is typically slow |
| Universal Life |
• Flexible premiums • Adjustable death benefit • Combines life insurance with a savings component |
• Cash value accumulates with interest • Cash value can be used to pay premiums • Can adjust coverage amount over time |
• Complexity in managing policy • Cash value depends on investment performance • Risk of policy lapse if cash value isn't managed carefully |
| Final Expense |
• Designed to cover funeral and burial costs • Fixed and affordable premiums • Whole life policy with a small death benefit (e.g., $5,000 to $25,000) |
• Simplified underwriting, often no medical exam required • Death benefit is guaranteed as long as premiums are paid |
• Higher cost per dollar of coverage compared to term • Limited coverage amount may not cover all final expenses |
Did you know life insurance can benefit you while you're still alive?
With Living Benefits, your policy can provide financial support during your lifetime, covering critical illness, long-term care, or even retirement supplement.
Term Life Insurance with Living Benefits
This allows you to access part of the death benefit early if you’re diagnosed with a serious illness.
Cash value
Permanent life insurance policies build cash value over time, which you can borrow against or use for things like emergencies, college funding, or retirement, offering flexibility while you’re still alive.
Long-Term Care (LTC) Rider
This option lets you use part of your policy’s payout to cover long-term care costs, such as nursing homes, if you become chronically ill, helping to protect your savings.
Let Sum It Up!
| Premium Amount |
Coverage (Death Benefit) | Cash Value | Living Benefits |
Borrow Against Policy | |
|---|---|---|---|---|---|
|
Term Life Insurance | Fixed, Low |
High (for a limited term) | ❌ | ✅ | ❌ |
|
Whole Life Insurance | Fixed, High | Lifelong | ✅ | ✅ | ✅ |
|
Universal Life Insurance | Flexible Amount | Lifelong | ✅ | ✅ | ✅ |
|
Final Expense Insurance |
Fixed, Low to Moderate |
Low (focused on funeral/medical) | ✅ | ❌ | ✅ |
Why Life Insurance as a Wealth-Building Tool?
Life insurance can be a powerful tool for growing your wealth, protecting your future, and creating a lasting legacy.
Life Insurance Retirement Plan
Use permanent life insurance to build cash value over time, which grows tax-deferred and can be accessed tax-free during retirement, while still providing a death benefit for your loved ones. It combines wealth-building with long-term financial protection!
Over 60% of Americans lack enough savings for retirement.
Million Dollar Baby
Invest in a life insurance policy for your child and give the gift of financial independence. The funds can grow over time, giving your child the flexibility to use it in important milestones like college, wedding, buying their first car, or even supporting their retirement later in life. That's the power of compound interest!
Be Your Own Bank
Borrow against the cash value of your life insurance policy—tax-free loans, no credit checks, and flexible repayment terms, offering financial flexibility when needed.
Premium Financing
Take out a loan to pay for your life insurance premiums, keeping your cash invested elsewhere. This will allow you to build cash value in the policy and pass on a tax-free death benefit to your beneficiaries.
If the policy’s cash value grows faster than the loan interest, you can also profit from the difference, making it a smart wealth-building strategy!
Legacy & Estate Planning
Protect your wealth and legacy with life insurance. This ensures a smooth, tax-efficient transfer of wealth, helping families preserve and grow their assets across generations.
Over 50% of wealthy families use life insurance as a key strategy to cover estate taxes and transfer wealth tax-free
Building wealth through life insurance is one of the MOST POWERFUL and UNDERUTILIZED TOOLS you have at your disposal.
So, what’s stopping you?