Week 5: How the Wealthy Use Life Insurance to Build Generational Wealth
- Madio Lee
- Mar 24
- 1 min read
Most people think of life insurance as something you leave behind when you die. But the wealthy use Indexed Universal Life (IUL) insurance as a wealth-building tool while they’re still alive.
How an IUL Works for Wealth Creation
Your money grows tax-free inside the policy.
You can borrow against it without penalties (unlike a 401(k)).
No market risk—your principal is protected even in a recession.
Example: The Bank on Yourself Strategy
John, a 35-year-old entrepreneur, invests $500/month in an IUL policy. By 55, he has:
$500,000 in cash value he can access anytime.
No taxes on withdrawals.
A death benefit for his family—but he can use the money before that.
Compare this to a 401(k):
He’d pay taxes on every withdrawal.
He’d be penalized for taking money before 59½.
His money is at risk in the stock market.
Your Turn
What’s your biggest concern about retirement? Let’s talk in the comments.
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