Is Insurability the Most Overlooked Asset in Retirement Planning?

In the world of retirement planning, most advisors focus on three things: time, money, and risk. But there's one critical asset that often gets left out of the conversation — insurability.

Without it, many of the most powerful wealth strategies are off the table.

The Hidden Value of Being Insurable

Let’s borrow a page from publishing titan Henry Luce, who built an empire on three simple words: Life, Time, Fortune. Interestingly, that same triad provides a lens through which we can view retirement planning:

• Life — The lifestyle your clients want to maintain

• Time — The window they have to prepare

• Fortune — The assets they must build to support it

When clients lose their health, they risk losing all three.

Why Traditional Retirement Vehicles Fall Short

Qualified plans like 401(k)s and IRAs are important, but for high-income earners, contribution limits, tax exposure, and market volatility can restrict their ability to generate enough income for the lifestyle they’re used to.

And in the event of an unexpected illness or premature death? The plan fails — unless there’s a backup.

The Power of Overfunded Life Insurance

A well-structured, overfunded universal life insurance policy can do more than protect a family — it can supplement retirement income with tax-advantaged access to cash and a built-in “self-completing” feature: the death benefit.

Done right, it provides:

✅ Tax-deferred growth of cash value
✅ Tax-free policy loans for income later in life
✅ A legacy benefit if the client passes prematurely

And most importantly, it only works if the client is insurable.

Advisor Takeaway: Who Should You Be Talking To?

• Clients under 60 in good health who have maxed out qualified plans

• High earners with CDs, savings, or non-qualified money sitting idle

• Families who value tax efficiency and asset protection

• Business owners seeking executive bonus plans or key-person strategies

Start the conversation before their health changes. Insurability isn’t just a checkbox — it’s an asset that, once lost, can’t be replaced.