#83: How Whole Life Insurance Actually Works as a Wealth Tool
Wed Dec 31 2025
To work with Smallwood Wealth Management visit http://Go.oncehub.com/swconcierge to schedule a call today!
Whole life insurance is often dismissed as expensive or unnecessary, but when structured properly, it can become one of the most powerful tools in a long-term financial plan. In this episode of Money Isnโt, John Smallwood breaks down how whole life insurance works when it is integrated into a broader strategy rather than treated as a standalone product. Using real planning scenarios, John explains how whole life can reduce taxes, lower portfolio risk, provide reliable access to cash, and create stability during market downturns. This conversation reframes life insurance as a living asset that helps protect wealth, smooth retirement income, and support better financial decisions over an entire lifetime.
Chapters:
(00:00) Introduction
(01:06) The Core Problem With โBuy Term And Invest The Differenceโ
(06:22) The Scenario Setup, Income, Spending, And Time Horizon
(09:08) How Taxes Quietly Drain Compounding Over Decades
(14:20) Volatility And Fees, Why โAverage Returnsโ Mislead People
(18:26) Term Insurance Is A Rental, And The Opportunity Cost Is Real
(28:52) The โDirty Wordโ, What Whole Life 100 Actually Guarantees
(51:43) Using Whole Life As A Volatility Buffer Inside A Bigger Plan
What part of your financial plan would feel less stressful if you had guaranteed access to cash during a market downturn? Leave your answer in the comments below.
Enjoyed the episode? Make sure to like, subscribe, and leave a comment with your thoughts. Don't miss out on future insights from John Smallwood!
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This communication is strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Fixed insurance products and services are offered through Ash Brokerage or Smallwood Associates, Ltd. Fixed annuities are long-term insurance products. Before you purchase, be sure to talk to your financial professional about the annuity's features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives. All guarantees are based on the continued claims-paying ability of the issuing company. Investment Advisory Services are provided by Smallwood Wealth Investment Management, LLC, an SEC-registered investment advisor. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056.
Securities offered through Regulus Financial Group, LLC. Member FINRA/SIPC. Headquartered at 2687 44th St. SE Kentwood, MI 49512. Regulus Financial Group, LLC and Smallwood Wealth Investment Management, LLC are not affiliated companies.
NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. NOT INSURED BY ANY STATE OR FEDERAL AGENCY.
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To work with Smallwood Wealth Management visit http://Go.oncehub.com/swconcierge to schedule a call today! Whole life insurance is often dismissed as expensive or unnecessary, but when structured properly, it can become one of the most powerful tools in a long-term financial plan. In this episode of Money Isnโt, John Smallwood breaks down how whole life insurance works when it is integrated into a broader strategy rather than treated as a standalone product. Using real planning scenarios, John explains how whole life can reduce taxes, lower portfolio risk, provide reliable access to cash, and create stability during market downturns. This conversation reframes life insurance as a living asset that helps protect wealth, smooth retirement income, and support better financial decisions over an entire lifetime. Chapters: (00:00) Introduction (01:06) The Core Problem With โBuy Term And Invest The Differenceโ (06:22) The Scenario Setup, Income, Spending, And Time Horizon (09:08) How Taxes Quietly Drain Compounding Over Decades (14:20) Volatility And Fees, Why โAverage Returnsโ Mislead People (18:26) Term Insurance Is A Rental, And The Opportunity Cost Is Real (28:52) The โDirty Wordโ, What Whole Life 100 Actually Guarantees (51:43) Using Whole Life As A Volatility Buffer Inside A Bigger Plan What part of your financial plan would feel less stressful if you had guaranteed access to cash during a market downturn? Leave your answer in the comments below. Enjoyed the episode? Make sure to like, subscribe, and leave a comment with your thoughts. Don't miss out on future insights from John Smallwood! Connect with Us On Social Media Instagram: https://www.instagram.com/smallwoodwealth LinkedIn: https://www.linkedin.com/in/john-l-smallwood Facebook: https://www.facebook.com/SmallwoodWealthManagement This communication is strictly intended for individuals residing in the states of CA, CO, CT, DC, DE, FL, GA, IL, LA, MA, ME, NC, NH, NJ, NM, NY, OH, PA, RI, SC, TX, UT, VA. No offers may be made or accepted from any resident outside these states due to various regulations and registration requirements regarding investment products and services. Investments are not FDIC- or NCUA-insured, are not guaranteed by a bank/financial institution, and are subject to risks, including possible loss of the principal invested. Fixed insurance products and services are offered through Ash Brokerage or Smallwood Associates, Ltd. Fixed annuities are long-term insurance products. Before you purchase, be sure to talk to your financial professional about the annuity's features, benefits, and fees, and whether the annuity is appropriate for you, based on your financial situation and objectives. All guarantees are based on the continued claims-paying ability of the issuing company. Investment Advisory Services are provided by Smallwood Wealth Investment Management, LLC, an SEC-registered investment advisor. Headquartered at 199 Broad Street, Red Bank NJ 07701-2056. Securities offered through Regulus Financial Group, LLC. Member FINRA/SIPC. Headquartered at 2687 44th St. SE Kentwood, MI 49512. Regulus Financial Group, LLC and Smallwood Wealth Investment Management, LLC are not affiliated companies. NOT FDIC INSURED. NOT BANK GUARANTEED. MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL. NOT INSURED BY ANY STATE OR FEDERAL AGENCY.