Broker Check

Whole Life Insurance and Retirement Plans

Whole Life Insurance may be a way to go…and here’s why.

While the primary purpose of life insurance is the death benefit protection, it is important to understand the advantages that cash value accumulation can provide, including supplemental income during retirement.1

You didn’t become successful by following the herd. And you shouldn’t necessarily automatically choose a 401(k) plan before you consider the advantages program utilizing life insurance.

What is a program and how can it be an alternative to government-sponsored programs? Here’s why: it’s a smart way to grow your wealth virtually devoid of risk. Let’s take a side-by-side look:

401(k)Life Insurance

Tax Benefits

Tax-deferred growth and tax-deferred contributions

Tax-efficient growth and post-tax contributions

Contribution Limits



Control of Money

Invest options offered

 Access to Cash Value1

Management Fees

Fees incurred

No management fees

Rate of Return

Subject to market volatility

Guaranteed return and no market risk


Penalties charged under certain conditions

Access to Cash value1

Additional Options

Few options available

Tax-free transfer to heirs and potential tax advantages for business use


Utilizing life insurance provides tax-efficient growth if set up properly and handled right and it is free from market fluctuations. Your 401(k) only offers tax-deferred growth and is tied into market volatility with no guarantees.

Utilizing life insurance gives you more control of your money. Your money is not tied into the value of shares or bonds, you can access cash value. You can access cash value and use it for anything you want – other investments, home repairs, a new car, for example. Your 401(k) on the other hand, offers very little liquidity that isn’t tied in with penalties1.

Utilizing life insurance sets you free from management fees and penalties. You get a multitude of tax advantages and tax-free transfers to your heirs with NO hidden fees, NO contribution levels, NO limits or penalties whatsoever. Enjoy secure, risk-free returns without the costs!

Sure, the 401(k) has its benefits – employer match, pre-tax dollars, growth potential, and others. However, see why more and more business professionals are considering Life Insurance as a choice of the future.

Speak to a Certified Financial Planner at (732) 212-5018 .

1 - Some whole life polices do not have cash values in the first two years of the policy and don’t pay a dividend until the policy’s third year. Policy loans and withdrawals affect the guarantees by reducing the policy’s death benefit and cash values. Life insurance is not an investment, deposit, profit plan, interest plan, savings, private pension plan, or retirement plan.