The 3 Main Types of Life Insurance And How to Use Them Like a Financial GOAT

Let’s talk about something most people avoid: life insurance. Too many of us treat it like a funeral fund or a “just in case” policy to cover a casket, a plot, and some chicken at the repast. But let me tell you right now: life insurance isn’t just for death, it’s a powerful tool for wealth.

I didn’t really understand the power of insurance until I studied how the wealthy use it. They don’t just buy policies, they strategically fund legacies. Here’s a breakdown of the 3 main types of life insurance and how to actually use them.

1. Term Life Insurance — Protection for a Season

Term insurance is exactly what it sounds like: coverage for a specific period, like 10, 20, or 30 years. If you pass away during that term, your beneficiary gets the payout. If you outlive it, the policy expires. It’s affordable and great if you’re:

• A young family building wealth

• Paying off a mortgage

• Raising kids who rely on your income

  
  

Coach RL’s Strategy: Use term life while you're building assets. Stack your investments and real estate, and let this policy cover you while your net worth catches up.

2. Whole Life Insurance — Protection for a Lifetime

Whole life insurance never expires (as long as you pay the premiums) and builds guaranteed cash value over time. It’s more expensive than term, but that’s because it’s doing more. Cash value grows tax-deferred, and you can borrow from it like your own personal bank.

Coach RL’s Strategy: Use whole life as a financial foundation. I call this your legacy anchor. You can:

• Borrow from it to fund business or pay for college

• Leave it behind tax-free

• Pair it with a trust to create generational wealth

3. Indexed Universal Life (IUL) — Protection + Growth Potential

IUL policies are flexible. They cover you for life like whole life insurance, but the cash value is tied to a stock market index (like the S&P 500), with built-in protections so you never lose money in a down year. It's a smart way to grow your money without the same risks of direct investing.

Coach RL’s Strategy: This is where we get fancy. IULs are great for:

• Long-term tax-free retirement planning

• Creating a secondary stream of income

• High-income earners who’ve maxed out their 401(k)s

You can adjust premiums, access cash value, and still have a death benefit in place. The key is working with someone who understands how to structure it properly.

Life insurance is not just a policy, it’s a plan. Whether you’re covering a 20-year mortgage or building a 200-year legacy, these three types of insurance can be tools to:

• Protect your family

• Fund your dreams

• Build generational wealth

Don’t just think about who’s burying you.Think about who’s building because of you.

If you're ready to stop playing defense and start building a legacy like the wealthy do, let’s talk. Book a session with me at www.yourmoneygoat.com.

Let’s make sure your insurance is more than a policy — let’s make it a power move.