How Whole Life and Guaranteed Universal Life Insurance Support Legacy, Wealth Transfer, and Tax Efficiency

In today’s post, Bruce and I (Rachel Marshall) want to bring you behind the scenes of a candid and educational conversation we had with Matt Ewald, Vice President of Life Insurance at Advisors Excel. If you’ve ever wondered when and why to use guaranteed universal life insurance (GUL) —especially in the context of estate planning—this one is for you.

We’ve been having more and more conversations with families who aren’t just thinking about how to grow their wealth—but how to keep it intact for the next generation. And when estate taxes enter the picture, the stakes change. It’s not just about protecting income anymore—it’s about protecting impact. About making sure what you’ve built doesn’t get lost in fees, confusion, or government claims.

Because when it comes to life insurance in the context of wealth transfer, you’re not just planning for protection—you’re planning for legacy.

Let’s get into it.

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Why This Conversation Matters

If you’re like most of our clients, you’re already successful. You’ve created wealth, you’ve stewarded well—and now you’re asking deeper questions.

Questions like:

• How do I pass on what I’ve built with intention?
• How do I shield my estate from unnecessary taxation?
• Is whole life the only tool for this? Or is there something else I should consider?

In this blog, we’re breaking down exactly what guaranteed universal life insurance is, how it’s different from traditional IULs and whole life, and why it could be a strategic piece in your legacy plan.

From Infinite Banking to Estate Strategy: A Shift in Focus

We spend a lot of time on this podcast talking about whole life and its power as a privatized banking system—a way to store capital, access liquidity, and fund your life on your own terms.

But not every financial goal calls for cash accumulation.

Sometimes, the goal isn’t to use the money during your lifetime at all. It’s to transfer wealth efficiently, minimize estate taxes, and ensure your heirs receive more—without the friction and loss.

And that’s where guaranteed universal life enters the scene.

Guaranteed Universal Life insurance 101: What It Is (and Isn’t)

Matt Ewald described guaranteed universal life insurance as a permanent term contract. That phrase stuck with me.

Here’s what it means:

• GUL is designed to give you the most death benefit for the least premium.
• Unlike cash-rich whole life or traditional IULs used for banking or income, GUL is a protection-first strategy.
• The focus is not on growing cash inside the policy. The focus is on locking in a death benefit that will be there guaranteed—no matter what the market does.

And what makes it guaranteed?

The no-lapse guarantee rider.

This rider is the linchpin. It says, “As long as you pay the premium exactly as illustrated, this policy will not lapse—no matter how the underlying market indexes perform, no matter what cap rates change, no matter what happens behind the scenes.”

It’s simple. It’s predictable. And it’s ideal for estate planning when death benefit certainty is the priority.

Estate Planning and the Tax Conversation

Here’s the reality we’re facing:

• The estate tax exemption today is high—around $13 million per person. But it won’t stay there forever.
• Just 20 years ago, it was $1 million. And the political winds are already shifting toward reducing the exemption again.
• That means more families will face estate tax exposure in the future—even those who don’t consider themselves “ultra-wealthy.”

And taxes at death are not just a theoretical problem. They’re real. They can erode up to 40% or more of an estate—unless you have the right strategy in place.

Guaranteed universal life insurance solves for one specific problem: funding the tax bill without selling off assets.

Think about it.

You’ve built a portfolio of businesses, properties, IRAs, and investments. But how much of that is liquid? And will your heirs have to sell it off—at a discount—to pay Uncle Sam?

Guaranteed life insurance sidesteps that risk. The death benefit shows up when it’s needed most, with zero taxes owed. It provides instant liquidity, bypasses probate, and funds the liability without touching your estate assets.

That’s powerful.

Here’s the key takeaway: Use the right tool for the right job.

As Matt said, trying to make one policy do everything usually leads to a diluted result. When we compartmentalize—designing different policies for different outcomes—we maximize both performance and peace of mind.

The Myth of “Set It and Forget It”

A mistake we see often? Assuming that once your policy is in place, your work is done.

Matt said it best: “No policy is as good as it is sold. It’s only as good as it’s serviced.”

Timing matters, especially with guaranteed universal life insurance. Premiums must be paid on time—consistently—to maintain the guarantee. If you’re late or miss a year, the no-lapse rider could be compromised, and that defeats the whole point.

That’s why we always recommend automatic payments, annual reviews, and clear communication with your advisor.

This isn’t “set it and forget it.” This is stewardship. And stewardship is what legacy is made of.

What About Accessing Capital?

Here’s where guaranteed universal life insurance and whole life differ dramatically.

If you want to use your policy to:

• Borrow against your cash value
• Fund real estate
• Launch a business
• Create passive income streams
• Or serve as your personal bank

Then GUL is not your tool.

Guaranteed universal life insurance is a single-purpose strategy: high death benefit, minimal premium. It’s the opposite of banking-focused whole life.

Roth Conversions, IRA Taxes, and Legislative Risk

Another reason this conversation is so timely?

The Secure Act and Secure Act 2.0 changed the game.

Now, when your heirs inherit a Roth IRA, they must liquidate it within 10 years. That means no more lifetime tax-free growth. And if it’s a traditional IRA, the tax hit could be severe—especially if they’re already in a high tax bracket.

As Bruce shared, life insurance can be a smart strategy here too.

You can:

1. Pay taxes now on your IRAs through strategic Roth conversions
2. Reposition that after-tax money into life insurance
3. Pass on tax-free death benefit with no RMDs and no 10-year liquidation rule

And unlike Roths, there’s no legislative risk of future taxability. Life insurance proceeds are protected under current law—and have been for over a century.

The Real Value: Peace of Mind, Not Just Rate of Return

Let’s make one thing clear:

Yes, the internal rate of return on a guaranteed universal life insurance policy can be “better” if you die early.

But no one wants to die early.

The real value here isn’t in financial ROI. It’s in emotional ROI.

• It’s the peace of knowing your family won’t have to sell the business.
• It’s the clarity of knowing the IRS won’t get a windfall.
• It’s the satisfaction of designing your legacy—not leaving it to chance.

That’s what GUL delivers. Not cash value you can use—but certainty your heirs can count on.

What We Covered

Let’s bring this all together.

• Guaranteed universal life insurance (GUL) is a strategic tool for high-net-worth families looking to minimize estate taxes and maximize transfer efficiency.
• It’s different from whole life—not better or worse, just designed for a different job.
• The no-lapse guarantee ensures death benefit certainty—as long as premiums are paid exactly as planned.
• These products are not for cash access, banking, or flexibility—they are for protection only.
• Legislative risk is real, and life insurance helps hedge against future tax changes.

Your legacy is too important to leave to chance. Whether you’re preparing for future estate tax exposure, or simply want to steward what you’ve built with clarity—there are tools and strategies that can help you do that.

Use the right tool for the right job.

And if you’re not sure which one you need? That’s what we’re here for.

Don’t wait.

Your legacy is not the caboose of your life—it’s your engine.

Let’s design it with purpose.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

1. Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.
2. Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.