Strategies
Eleven ways families, retirees and business owners put cash value life insurance to work, with who each one fits and the honest watch-outs.
Finance big purchases from your own cash value and pay yourself back.
Families and business owners who regularly finance cars, equipment, real estate or inventory.
Takes years and consistent funding; loans accrue interest. Full guide →
Max-fund an IUL or whole life policy during your working years, then take income through withdrawals and policy loans.
Earners who want a third tax bucket beyond the 401(k) and Roth.
Must be non-MEC and stay in force; needs annual reviews. Full guide →
In retirement, take income from cash value in years after a market drop instead of selling investments at a loss, then return to your portfolio once it recovers.
Retirees worried about sequence-of-returns risk. Based on research by Wade Pfau, PhD, CFA and Michael Finke, PhD, CFP, which found scenarios with cash value produced more retirement income.
The cited research was industry-sponsored; works best when the policy is funded years in advance.
Because the death benefit can replace what you spend, you can spend down or annuitize other savings with more confidence, knowing your heirs are still covered.
Retirees who under-spend out of fear of leaving nothing behind.
Requires keeping the policy in force for life.
Earn too much for a Roth IRA? A max-funded policy has no income limits and no IRS dollar contribution cap.
High earners above the Roth phase-out ($168k single / $252k joint in 2026), often after maxing a 401(k).
Insurance costs and surrender charges; it's a long-term commitment.
Use the 401(k) for the match and a policy for tax-advantaged access. In retirement, blend withdrawals to manage your bracket and RMDs.
Anyone with most of their savings in tax-deferred accounts.
Don't give up an employer match to fund a policy.
A policy on a child or grandchild (issue ages from about 15 days) locks in insurability regardless of future health, and gives decades for cash value to compound for college, a first home or their own retirement. Ownership can transfer to the child later.
Parents and grandparents who want to give a lifelong financial foundation.
Coverage amounts are limited by the parents' coverage; fund it consistently.
Executive bonus (§162): the company bonuses the premium, the employee owns the policy. Key person: protects the business if a key leader dies. Buy-sell funding: the death benefit, or cash value for a living buyout, funds ownership transfer.
Owners who want to reward and retain key people, protect the company and plan succession.
Tax treatment depends on entity type and requirements like §101(j) notice and consent; coordinate with your CPA.
An income-tax-free death benefit can pay estate costs and equalize inheritances. For example, one child inherits the business and another receives the policy proceeds.
Families with a business, real estate or other illiquid assets.
Large estates often use an irrevocable life insurance trust (ILIT); work with an attorney.
Accelerated death benefit riders may let you access part of the death benefit for a chronic, critical or terminal illness. Hybrid life/LTC designs are now the leading private long-term care solution, per LIMRA/EY.
Anyone who wants coverage that can help while they're living, not just after.
Amounts accelerated reduce the death benefit; riders vary by carrier.
A lender pays premiums on a large policy while the client posts collateral, aiming to keep capital invested elsewhere.
Only high-net-worth clients with substantial liquidity and a long horizon.
Serious risks: rising borrowing costs, cap cuts and collateral calls. We stress-test conservatively or recommend against it.
Put it together
A business owner might pair executive bonus with self-banking. A couple near retirement might combine the volatility buffer with permission to spend. We'll map the right mix to your goals in one free session.
Build My StrategyYour next step
A free, no-pressure strategy session. We'll design IUL and whole life options from top-rated carriers side by side, and show you the guaranteed column too.
