Cash Value Insurance Vs. IRA/401K

Table of Contents

Dollars WorkingRecently an article published on Yahoo! discussed the advantages and benefits of Cash Value Life Insurance.  Not only did the author list many of the benefits found within Cash Value Life Insurance (Whole Life), but he went one step further and compared them to traditional savings plans (ROTH IRA, IRA, 401(k), just to name a few).

Clearly the author (C. Anthony) understands the basics and economics behind whole life insurance policies, and many of the examples illustrated are directly inline with what Infinite Banking is all about. Rarely do you see much written about the living benefits associated with whole life insurance, and it is refreshing to find a simplified article (from someone outside the insurance industry) that grasps these ideas and delivers them in an effective manner. We highly recommend that you read the article and we have included some notable excerpts from the article below…

Cash Value Insurance Vs. IRA/401K

“In this article, I want to discuss a little bit about cash value life insurance, and compare it in a retirement scenario to a more traditional IRA, ROTH IRA, or 401k. I will show, that, in general, before the age of 40, whole life insurance will outperform a ROTH or traditional IRA or just about any of that other mutual fund propaganda. In fact, it will usually outperform a 401k with company match as well….”

“Because as soon as you understand economics of life insurance, you will see that in a whole life policy, you have $1 doing the work of $2….”

“Did you read that? You will get PAID to have life insurance. How does that happen, you ask? It comes from a little axiom that I like to call, $1 doing the work of $2….”

Article: Yahoo! Associated Content – Cash Value Insurance Vs. IRA/401K

Infinite BankingTo learn more about the living benefits of cash value life insurance and Infinite Banking contact us at 1-800-870-8670 or by e-mail at

Download our free article on Infinite Banking!


Q: What are the key differences between cash value insurance and IRA/401k plans?

A: Cash value insurance, like whole life policies, offers lifelong coverage and tax-deferred cash value growth, whereas IRA/401k plans are primarily retirement savings vehicles with tax advantages and potential employer contributions.

Q: Why might cash value insurance be more beneficial before the age of 40?

A: Cash value insurance can be more beneficial for younger individuals due to its long-term growth potential, tax advantages, and flexibility in accessing funds without penalties, unlike IRA/401k plans which have stricter withdrawal rules.

Q: How do cash value insurance and IRA/401k plans perform as retirement savings options?

A: While IRA/401k plans are widely used for retirement savings, cash value insurance can potentially outperform them by offering consistent growth, tax-free loans against the policy, and no required minimum distributions.

Table of Contents

Related Articles

A Wealth Maximization Account is the backbone of The Perpetual Wealth Strategy™