Why Whole Life Insurance is Your #1 Cure for “The Succession Plague”

by BetterWealth

Lewis was one of those men who made the “Greatest Generation” so darn great…
He was born to a poor Southern farming family just a few years before the Great Depression.

When he was asked later on what it was like to grow up poor during times of such intense financial hardship, all he did was shrug, “it just meant everyone else was as poor as we were for a little while … at least we could grow our own food!”

A few years later — just as Lewis was entering manhood — the Japanese navy bombed Pearl Harbor. The war was on, and Lewis heeded the call. He joined the Army Air Force after deciding he “didn’t want to walk across Europe” and completed dozens of dangerous missions as a radio operator aboard a B-17 bomber.

Returning home after the war, Lewis did what so many other men of his generation did. He took a wife, and he built a home in a picturesque Carolina town. Beating his proverbial sword into a plowshare, Lewis returned to his farming roots, growing bumper crops of tobacco, hogs and turkey that grew each year.

He lived a quiet, happy life in the decades to come … watching his farm grow and grow alongside his family, which blossomed from three children into eight grandchildren right before his eyes.

Lewis passed in his late 60s, leaving behind a wife who would live another 20 years to witness the births of multiple great grandchildren and host the large extended family in her country home during the holidays.

By all accounts, Lewis and his wife enjoyed a wonderful life. They worked hard, they raised their kids well, and they managed their hard-earned money prudently.

But even after a lifetime of hard work, faith and dedication, they still made a few decisions that had unexpected consequences after they were gone…

You see — as a faithful, god-fearing Southerner, Lewis adhered to a culture with some pretty strict rules. The culture dictated that men were the providers, the ones who should do the hard outdoor work on the farm, while women tended more to the private sphere. Never mind the fact that his two adult daughters were big city executives! Lewis came from a time when culture was culture, and that was that.

To be fair, Lewis’ son had spent a lifetime working on the farm already. It made sense that he should inherit the family business, since it was practically already his. His two sisters didn’t really need the money anyway.

But as their mother’s health continued failing, she needed constant care. The old Southern woman refused to move to an assisted living facility, so the sisters spent a great deal of time and effort comforting their mother in her waning months. Meanwhile, their brother kept tending to his farm — leaving most of the difficult home care to the ladies of the family.

It’s easy to see how this arrangement might start feeling a little unfair … even if you weren’t dealing with siblings that you’ve been arguing with since you were old enough to talk.

Lewis’ children suddenly found themselves experiencing mild symptoms of all-too-common condition I’ve dubbed “The Succession Plague” …

The Succession Plague is a byproduct of the fact that most estates are a bit disproportionate or “lumpy,” if you will. So you have the big lumps in the portfolio — like a family business, a farm, or an investment property — and then you have the smaller lumps, like a stock portfolio, or a home that’s worth a fraction of what the business is worth.

So when you go to pass these assets along to the next generation, you’re often stuck with some tough choices.

Your heirs might have the incentive to liquidate assets in order to fairly distribute the inheritance, potentially derailing decades of hard-won growth and compounding. Worse still — the division of assets could lead to lasting alienation among family members.

So how can you avoid all this needless stress?

With a well-funded whole life insurance policy, of course…

Because one of the principal benefits of whole life insurance is a guaranteed cash benefit that’s paid out upon your passing. That benefit is liquid, it’s tax-free, and it’s paid out almost immediately (within 15-60 days of passing).

So you can use that cash benefit to balance out an otherwise lumpy portfolio, ensuring a fair share for each of your heirs. This cash benefit is specifically outlined when you sign the policy as well, which can give your entire family peace of mind when it comes to planning for the future.

This liquid cash benefit also introduces a whole new range of options and flexibility for your heirs…

For example, instead of liquidating assets or selling off businesses, heirs could use the cash benefit to cover the (often-extensive) estate tax payments and other related costs. That way, those assets can continue compounding and continue growing all the way into another generation.

It’s even possible to borrow against the cash value of your policy while you’re still alive in order to pay for unexpected medical costs without having to go out-of-pocket. These loans are tax-free, and they don’t come with a fixed repayment schedule … so they can provide easy liquidity when you need it most. Some whole life insurance policies also come with a Critical Illness Rider, which allows you to liquidate a portion of the policy without any penalties in the event of serious illness.

Whole life insurance is a powerful tool not just for protecting and growing your wealth, but also for managing your wealth into the next generation—setting up your heirs (and their heirs) for a lifetime of lasting success…

Key Takeaways

  • Whole life insurance provides a guaranteed, tax-free cash benefit that can be paid out quickly upon death, offering essential liquidity to heirs.
  • This cash benefit can be used to balance uneven inheritance portfolios, preventing the forced sale of valuable family assets like businesses or farms.
  • Proper use of whole life insurance helps avoid family disputes and financial hardship often caused by disproportionate estates, known here as "The Succession Plague."
  • Heirs can use the policy’s cash value to cover estate taxes and other costs, allowing key assets to continue growing and compounding wealth across generations.
  • Whole life insurance policies may offer borrowable cash value during the policyholder’s lifetime, providing flexibility for unexpected expenses without out-of-pocket costs.
  • Riders such as Critical Illness Riders can allow early access to funds without penalties in the event of serious illness, enhancing protection and liquidity.
  • Using whole life insurance strategically supports continuity, risk protection, and intentional wealth transfer in high-net-worth families and business owners.

Ready to see how this could apply to your wealth plan? Click the big yellow Clarity Call button and let’s map it out together.