Not too long ago in 1977 Primerica began a shift in conventional thinking for life insurance asset protection and advocated “BUY TERM AND INVEST THE REST.”

This was a seismic shift from the old school conservative strategy of permanent life insurance (a.k.a. whole life or CSV, cash value life). Many millionaires built tremendous generational wealth using CSV policies, but that approach requires patience and discipline. Primerica created a different way and different mindset for how consumers can protect their assets and build wealth.

The target for Primerica’s campaign was middle class America. They revolutionized how middle class americans purchased life insurance and asset protection.


Rewind the clock 20 years and many families headed by breadwinners in the their mid-20’s to early-30’s followed the “buy term and invest the rest” recipe. Because these breadwinners were young, many of those term policies were affordable (cheap) 20 year term policies with high face values.

In a perfect world, the “invest the rest” component have resulted in a family fortune to fund generations of wealth – EXCEPT – the world is NOT perfect.

Now those very same people have expering term policies – AND – still have a need for asset protection and life insurance (remember, the world is not perfect). The are finding out (or unfortunately will find out) that term insurance in their 40’s and 50’s is a LOT more expensive.


Life insurance was EASY (we were healthier) adn CHEAP back in our 20’s and 30’s. It served one major purpose and one major purpose only – DEATH BENEFIT.

Now, as the 20-30 year olds come up on an expiring policies, premiums for new policies will be at least 3X (many cases more). Not only is the cost of insurance WAY MORE than it was than in their 20’s and 30’s, there are many more considerations, needs and requirements;

  • Chronic and Terminal Illness
  • Critical Illness
  • Long Term Care
  • Retirement Funding
  • College Funding (children AND grandchildren)
  • Legacy

The above is list is just a partial list of all the considerations, needs and requirements.


As the cost of insurance for middle America dramatically increases in our 40’s and 50’s, the thought of seemingly “throwing money away” on insurance is a hard pill to swallow.

There are, however, alternatives and options – VERY ATTRACTIVE AND COST EFFECTIVE OPTIONS.

We are going to focus on four (4) asset protection and life insurance options for “main street” America people ages 40-60.

  • Term Life Insurance
  • Whole Life Insurance
  • Term ROP Life Insurance
  • Equity Indexed Universal Life (IUL)

Term Life Insurance for 45-60 Year-Olds

ADVANTAGES: Straight term life plus any additional riders, will be the least costly of the four options. Term will satisfy your need to pass along a tax free death benefit to your beneficiaries and survivors. 

DISADVANTAGES: If you outlive the term, you premiums are lost and there is nothing leftover, there is no cash value or cash accumulation.

Whole Life Insurance for 45-60 Year Olds

ADVANTAGES: A permanent life insurance policy with guaranteed benefits, forever. Policies will accumulate cash value that you can borrow (tax free) against. Paid-up addition riders are available that will allow you to “supercharge” your cash value. Top performing Participating Whole Life policies have a LONG history of producing returns, even during bear markets (i.e. great depression, 2008 financial crisis). Flexible “dividend” options for participating whole life (i.e. paid up additions, cash, etc.) Tax free loans against the policy for retirement or other needs (cash or income).

DISADVANTAGES: Much more costly for the same coverage (face value) as term. You will be required to pay premiums longer than a term policy.

Term ROP Life Insurance

ADVANTAGES: Straightforward term (pure) insurance. If you outlive the term, the insurance company will return MOST of your premiums (minus policy fees and any premiums that are rated), the best ROP policies will return 80-90% of your premiums.

DISADVANTAGES: MUCH more costly than straight term insurance.

  • Equity Indexed Universal Life (IUL)
ADVANTAGES: A permanent life insurance vehicle using an annual renewable term policy in additional to side cash fund (up to the IRS 7702 limit). Leverage the lower cost of term insurance in your younger years to build cash value to sustain and self-fund more expensive term insurance in your later years. VERY flexible policies that will solve MANY asset protection needs in one policy, i.e. death benefit, chronic/terminal illness, critical illness, long term care, retirement funding, college funding and even disability. Upside growth using indexed crediting methods during bull markets and downside (floor) protection during bear markets.


DISADVANTAGES: The cost of insurance increases as you get older, in order to mainain a policy in a favorable tax status (IRS 7702), you can NOT allow the policy to lapse without a tax penalty. During bull markets, your growth (index credit rate) will be capped. IUL’s are very complicated to design and understand.


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