How to Use Whole Life Insurance to Get Rich

Getting rich is something we all think about. There are multiple ways to earn money and generate wealth, and using your whole life insurance policy is one of the most effective ones.

Although it works, getting rich with this type of permanent life insurance is difficult. In this article, we will show you how to do it.

Using Life Insurance to Build Wealth Requires the Right Mindset


We have become so used to banks that we are not even looking for other options. Depositing money and withdrawing it only to spend it has become second nature.

However, this isn’t how you build wealth.

To use a life insurance policy to build wealth, you need to have the right mindset.

What Mindset is Right?

First and foremost, understand that creating wealth through life insurance is a time-consuming process.

Secondly, you will be the one in charge. Just having a policy does nothing for you. Yes, you will receive death benefits, potentially with accumulated cash value and the ability to save money, but you will be in charge of generating wealth.

Having a policy will not help you reach your financial goals.

In fact, this can only set you back, especially if you have debts to pay off.

In such a situation, your life insurance policy becomes yet another thing you must manage.

Our Net Worth Exploded

Once you understand how the system works, you will be able to use it to your advantage.

Whether you build wealth on your permanent life insurance is up to you. We will try to equip you with the right tools and give you information that can help you on your journey.

We’ve gone through trial and error until we figured out how to work the system and use the policies to increase our net worth. 

And now, we can help you achieve the same results. The good news is that you don’t have to run a Fortune 500 company or have a team of financial experts you will pay enormous amounts of money to.

With a proper mindset and a community of like-minded individuals, you can use your life policy to get rich

Did you know that the rich become richer because they connect with others? See it yourself: 

You Cannot Use Any Permanent Life Insurance Policy

The policy you have in place plays a huge role. Having the right mindset and understanding the processes doesn’t necessarily mean you can run off, find an insurance firm, and buy just any life insurance.

Finding the right agent or life insurance company to create a high cash-value policy for you is essential. Let’s compare five different types of life insurance policies and see which one is best for building wealth. The first four all fall under permanent life insurance, and the fifth is slightly different but commonly used. 

  1. Universal life (UL) insurance
  2. Whole life insurance
  3. Variable life insurance
  4. Variable universal life insurance
  5. Term life insurance

Permanent Life Insurance vs. Term Life Insurance

As its name suggests, permanent life insurance lasts a lifetime. It promises the payment of a specified death benefit, but it is often used for cash value accumulation. In comparison, term life insurance can expire (and usually, it does expire before the policyholder’s life’s over)

Although it does have its benefits, keep in mind that we are comparing these insurance types only based on their wealth-building potential. Because term life insurance expires, it has lower premiums and no cash value. 

And we already indicated that you need a high cash-value insurance policy to get rich.

Therefore, term life isn’t one of the best insurance options.

Four Types of Permanent Life Insurance Left

All of the remaining policies have several things in common. This includes death benefits that your family members can use after the policyholder’s death. Also, they all have a built-in savings component. 

But which one should you use to acquire money?

Universal Life (UL) Insurance Policy

The premiums for universal life can change within a certain range, so you can’t make a plan you will stick to. Premiums can become higher over time, which could jeopardize your financial security. Furthermore, the cash value grows at an adjustable market interest rate.

Whole Life Insurance Policy 

Choosing this policy may seem repulsive to some people because of the higher premiums. But remember, you will need high cash value, so this is ideal.

Although premium payments are high, they never change. You will pay premiums every month or a year, no matter what’s going on around you, allowing you to plan your cash flow.

Furthermore, the cash value grows at a guaranteed fixed rate, which is what you need to build wealth.

Variable Life Insurance Policy

The next two policies are quite similar. The differences lie mostly in death benefits, tax benefits, and the price, which we will not get into now. Here’s a quick overview:


What you need to know about variable insurance is that although it provides solid investment options, you must also carry the risk. If the investment falls through, your death benefit and cash value can go down, no matter how high your premiums are. 

In other words, you can pay higher premiums while receiving less value. 

Variable UL Insurance Policy

With variable universal, premiums can vary and are higher than some standard policies. It, too, has investment opportunities, but this policy invests in securities and carries its own risks.

Cash value depends on the market, and if market volatility is high and prices drop suddenly, so will your cash value. You may also end up paying more to maintain death and other benefits.

Variable life and variable universal life are too unstable for what we need them to do for us, which is build wealth!

The Winner Is…

Therefore, the best permanent life insurance policy is whole life. It has stable premiums, a high cash value, and guaranteed growth.

Difference Between Banks and Life Insurance

You will use your policy as a bank to generate wealth through it. 

But then, why don’t I simply take a loan from the bank and invest it?

This is a legit question, and we will explain why using insurance is better than banks.

No matter who you borrow from, you will have to pay fees. Taking money from an insurance company usually carries a 5% simple interest charge. The one thing you can do is pay it back when the time comes. 

Banks require repayment in monthly installments, usually with increasing interest.

Borrowing vs. Withdrawing

It is important to note that you will borrow money against insurance. In other words, you will take a loan from the insurance company while your cash value keeps growing. In the meantime, you will invest your money and earn more than the 5% interest you have to pay back.

You will not withdraw money from your insurance. All you want to do is use your insurance as collateral. Therefore, it is important to distinguish between borrowing and withdrawing.

Repeat this process a few times: borrow money from your insurance firm, invest it, return what you borrowed, keep the difference, and watch as your cash value grows.

When you put it on paper, this sounds simple, but how do I do that in real life?

This leads us to our last point about building wealth.

Manage Your Funds

We’ve come full circle. The last and most important thing is how you manage your funds or how you use this system in everyday life.

Even though you will be taking advantage of the system in place, you still need to play by the rules. The insurance company will earn interest on the loan, but it is in your interest to pay it off as soon as possible to earn more money.

This is also where your mindset comes into play. Many people become lazy and stop doing certain things, then blame it on insurance. Developing bad habits in money management can wreak havoc, which is why discipline is critical.

What to do when you borrow money out of your life insurance policy

You don’t want the insurance company to dip into your cash value. The idea is to look for other investments, pay off your loan, and accumulate cash.

What you will invest in depends on where you are in your life. You must open your mind to flipping money creatively – we aren’t advocating anything unlawful here. Some common examples involve flipping homes, domain names, etc.

We Talk About This in our Community

In our Wealth Nation Money School Community, we talk about these steps concretely and what we did first to pay off our massive loans and later accumulate wealth. You can get step-by-step guides on what to do exactly and how to profit from your policy, and you can also discuss these things with like-minded individuals.

This can help you greatly on your journey to explore different life insurance options, choose the right one, and implement the steps that are needed. Furthermore, you can bounce ideas off other people and help them with something you know.