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Whole Life Insurance - In a Nutshell

Whole life is a traditional financial product that has been around for more than 150 years. It is a permanent life insurance that also grows cash value and is used as a savings vehicle or cash equivalent and a risk-management tool.

Here's what you need to know:


Permanent Life Insurance. By “permanent,“ it means that you can never outlive your death benefit. (This is also the “face value” of the policy.) Unless you cancel the policy or stop making payments before a policy is “paid up,” whole life insurance will pay a death benefit—guaranteed.

Compared to Term Life Insurance it is more expensive however it offers significantly more benefits.

  • Guaranteed death benefit

  • Cash value cannot be lost or decreased due to stock market or interest rate fluctuations.

  • Gains are locked in.

  • Depending on policy riders, a policy may include other protections in addition to a death benefit, such as potential long-term care benefits.

  • Can be used to finance a loan (without have to pre-qualify or go through a credit check) for purchase of a car, home ,etc. or an investment.

  • Can be used as an emergency fund during times of trouble or can save a home, save a business, or prevent devastating losses in the rest of your portfolio.


Whole life is not technically an “investment.” It’s an asset that protects all other investments.  During the Great Recession, many people liquidated or made withdrawals from IRAs and 401(k)s. This meant liquidating depressed assets while paying penalties and taxes to boot!

  • Whole life provides an ideal financial foundation because it grows money safely and steadily while protecting from the storms of life.

  • It is an ideal place to store cash where it can grow safely and more effectively than at a bank.

Why Have Life Insurance?

Life insurance is meant to be income replacement during your working years and asset insurance during retirement.

It is absolutely legally impossible for you to insure more than you’re worth or “be worth more dead than alive.”

Most typical agents will tell you to insure yourself with term insurance for 10x’s your income for 10 to 20 years or until retirement.

Life insurance when working is income replacement.

You should have in a place the amount of life insurance that would pay your family, your income just as if you were here still producing if you passed on.

Simple question to push you: Are the dreams and desires for your family the same whether you’re here to produce an income or not?

You're going to pay for life insurance in retirement whether you choose to or not.

You will either pay for it in premium dollars throughout your life for it to be there during retirement


You will pay for it in lost wealth due to not having the insurance there.

If you don't have permanent life insurance in place you will be costing yourself hundreds of thousands, if not millions of dollars.

Understand insurance is meant to indemnify the loss of an asset.

With this in mind, if you have permanent life insurance equal to the size of your estate when you retire you will open yourself up to more possibilities of income.


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