How to Survive Market Volatility with Whole Life Insurance

May 26, 2020

How can Whole Life Insurance help me?


 The COVID-19 pandemic has caused volatility to come roaring back into the financial world. More than 20 million jobs have been lost, the economy is in a recession, and markets have been fluctuating wildly. With financial security foremost in many people’s minds, it seems like an ideal opportunity to highlight three benefits of cash value whole life insurance that are even more valuable in times like these.

Whole Life Insurance Provides Guaranteed Cash Value Growth

As Markian mentioned in this recent video, the magic of compounding returns is significantly less magical if you experience down years. During a recession, most asset classes will be dropping in value. Holding a portion of your wealth in products with guaranteed returns is an excellent method to help weather market downturns. This is the reason ADPI Insurance recommends traditional whole life insurance, which provides guaranteed cash value growth. On top of guaranteed returns, the companies we work with have continued to pay additional dividends for over one hundred years, through both good times and bad.  


Recent events highlight why ADPI believes traditional whole life insurance is better than more recent permanent policy options, such as indexed options or variable life policies. These insurance products tie the growth of your policy to the performance of the stock market. In good times, this can be great. In bad times, not so much. Furthermore, if you already have exposure to the stock market through your retirement and brokerage accounts, you may end up facing a simultaneous drawdown in numerous portions of your portfolio.

Whole Life Insurance Provides Liquidity

In turbulent times, your whole life policy can provide a valuable source of much-needed liquidity. If you are a business owner, including rental property owners, you know that a down market or financial crisis can lead to an unexpected loss of income. You may need a ready source of capital to hold you over in these times. Furthermore, just when you need access to cash most, banks will be toughening lending standards to shore up their financial position. This could be the ideal time to tap a HELOC or other line of credit if you already have one available; however, you could be taking a loan against an asset just as it is dropping in value.


None of the available options will give you as much flexibility as a whole life policy loan. In a matter of days, with no application or origination fees, you can access a portion of your cash value and set the repayment schedule on your terms!


If you occupy a strong personal financial position even in a down market, liquidity can provide you more than just the ability to survive tough times. You may occupy the enviable position of being able to follow Warren Buffet’s advice and buy when others are fearful. Down markets provide the intelligent investor with cash on hand a huge opportunity to buy when others may be forced to sell. This could be just the time to leverage your cash value and snap up a once-in-a-decade deal.

You can also learn more about whole life insurance by listening to our podcast: How an Investor Uses Life Insurance to Grow in Real Estate.

Whole Life Insurance…is life insurance.

ADPI insurance primarily focuses on utilizing whole life insurance as a tool to build wealth but at the end of the day, for many of us it offers protection for our families if the worst should happen. The current pandemic is a stark reminder that we face many unforeseen perils in our lives. Life insurance is an essential requirement for defending against this uncertainty. Additionally, the ideal time to pursue a policy is when you are young, healthy, and have access to correspondingly low premiums, not when you think you need it most.

Find out more about the benefits of whole life insurance by visiting


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