Are you a part of the HENRY’s club? You know, those in fields such as medicine or law who are High Earners, Not Rich Yet. Even though you’re making good money, you can’t call yourself Larry Ellison or Bill Gates yet. Tune into this episode, and we’ll show you how you can join the long-lasting wealth club with life insurance.

What is a HENRY?

• Those who earn between 250,000 – 500,000 million a year can still feel a tax squeeze, market volatility, and the pressure of their lifestyle.
• Even though you have a high income, you don’t have lasting wealth that will last for generations. 
• You don’t want to pass away and for the money just last your children with. Life insurance can ensure that the wealth can last at least for your great-grandchildren. 

The Tax Benefits of Life Insurance

• One of the biggest advantages is the unique tax treatment. While the money you contribute to a policy isn’t tax-deductible upfront, the cash value grows on a tax-deferred basis. 
• When you’re ready to access the money, you can do so through tax-free distributions or loans. 

Strategic Advantages

• Beyond its tax benefits, life insurance offers several strategic advantages. 
• For professionals in high-risk occupations like law or medicine, the policy is a protected asset that creditors cannot touch. This protection extends to the money inside the policy, distributions, and the death benefit. 
• Another notable benefit is its effect on college financial aid. The cash value inside a life insurance policy does not count as an asset when filling out the FAFSA, which can help your children qualify for more grants and government loans.

Global Considerations

• For our global listeners, we covered how foreign nationals and global citizens can use U.S.-based life insurance.
• It’s an excellent way to hold a stable, dollar-denominated asset that can serve as a hedge against economic instability or currency issues in their home country. 
• While offshore options exist, U.S. policies often offer better pricing and stability.

“We’re not saying life insurance replaces everything else… but as part of a diversified portfolio, it provides unique tax and legacy advantages you can’t get elsewhere.” — Kurt

“With life insurance, you can put in as much as you want, relative to the death benefit—no penalties, no age restrictions, and access the cash when you need it.” — Mark