How to Create Generational Wealth Using the Perpetual Wealth Strategy™

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While there are many ways to create generational wealth, they all share one thing in common—planning. In this article, we’ll explain why the Perpetual Wealth Strategy is ideal for individuals looking to create and pass down generational wealth, from its unique tax advantages that help you and your heirs keep more of your hard-earned money, to its educational aspects that help secure a lasting financial foundation, generation after generation.


The Perpetual Wealth Strategy is an education system that helps maximize cash flow, minimize tax and efficiently grow wealth. It works for any financial stage, whether you’re paying down debt, looking toward retirement, or ensuring your legacy for future generations. Creating generational wealth is just one of the ways to use the Perpetual Wealth Strategy. It can also be used to supplement retirement income, grow your business, make investment purchases, or even fund a child’s education.

The Perpetual Wealth Strategy utilizes dividend-paying whole life insurance with a paid-up additions rider to to rapidly grow wealth without exposing it to the risks of the stock market. This type of uniquely structured whole life insurance is called a Wealth Maximization Account™ (WMA) and it’s an ideal vehicle for creating generational wealth that can be passed down to your heirs tax-free.


Like all life insurance, a Wealth Maximization Account pays out a tax-free death benefit to your heirs. Because it utilizes permanent whole life insurance, a WMA is guaranteed to pay out, whereas term life insurance only pays out if you pass away within the predetermined term. But your insurance premium does more than simply purchase insurance to be paid out in the form of a death benefit. WMAs also feature a built-in savings account called cash value that reflects the value of premiums paid into the policy.

Cash value in a WMA earns a guaranteed rate of return and steadily grows wealth. What’s more, it also earns non-guaranteed dividends, which further increase the value of your policy. The top-rated mutual insurance companies we work with at Paradigm Life have historically paid out dividends for over 100 years. 

On top of a guaranteed rate of return and dividends, a WMA takes advantage of additional insurance called paid-up additions that allow you to “overfund” your policy in its early years, supercharging its growth and creating exponentially more value over time. 

Not only does a WMA guarantee a death benefit, it works to create additional generational wealth for your heirs in the process. 

And your heirs aren’t the only ones who benefit. You can access your cash value while you’re living in the form of tax-free policy loans, providing cash on hand for purchases like investments, or to generate business capital. Unlike a bank loan, you don’t need credit approval and you determine the payback terms. Regardless of whether or not you borrow from your cash value, it continues to earn a guaranteed rate of return on the full cash value of the policy. In other words, taking out a policy loan doesn’t affect the growth of the policy. 

By taking out a policy loan from your WMA, you can maximize wealth by recapturing interest. You essentially become your own bank

For these reasons, a WMA is an ideal tool for emergency savings. In fact, the Perpetual Wealth Strategy suggests it should be your financial foundation—the first tier in the Hierarchy of Wealth. It’s an asset you have a great deal of control over with very little risk. 

In fact, teaching your heirs how to structure generational wealth according to this hierarchy is one of the proven ways to ensure a lasting legacy. For even more financial security, consider purchasing WMAs through an Irrevocable Life Insurance Trust (ILIT), offering increased asset protections and estate-tax advantages. 

Read More: 14 Ways to Grow Generational Wealth


Interested in learning more about how to use the Perpetual Wealth Strategy to create generational wealth? Here are 3 ways to get started:

Perpetual Wealth 101®

At Paradigm Life, we know that millions of people follow out-of-date financial advice that prohibits the future they deserve. Perpetual Wealth 101 consists of a series of free videos that teach you The Perpetual Wealth Strategy™ and guide you to a secure financial future.

Register for free access and start learning what the wealthy already know. Start Now!

The Perpetual Wealth Strategy™ Podcast

The Perpetual Wealth Strategy is a powerful financial asset. This podcast takes a deep dive into its foundational benefits, WMA best practices, and elevated utilizations that help you maximize its value. Get actionable insights from tenured Wealth Strategists and hear powerful success stories from fellow clients embarking on the same financial path. Listen here.

Meet with a Wealth Strategist

At Paradigm Life, our primary goal is financial education. We offer free consultations to clients and prospective clients to answer your questions and outline what your customized WMA might look like. Your goals are our goals, and we’re with you every step of the way in a no-pressure, virtual environment that puts you in the driver’s seat of your financial future. 

Schedule a free virtual consultation here.

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