August 5, 2025 / Press
Neil Solarz Discusses Life Insurance as a Tool for Building Generational Wealth in GoBankingRates
Neil Solarz recently spoke to GoBankingRates about how life insurance can be a tool to build and maintain wealth. The article, entitled “4 Surprisingly Smart Ways To Use Life Insurance To Build Generational Wealth,” offers readers tangible steps to provide a safety net for family members.
Neil explains that those who own larger estates should avoid having an insured descendant own the policy and instead opt for an irrevocable life insurance trust (ILIT) to own the policy with someone else as the trustee in order to avoid estate taxes.
“These trusts can also have provisions for the surviving spouse and children following the death of the insured,” Neil tells GoBankingRates. “When the policy proceeds come in, they will be income tax-free and transfer tax-free.”
Neil goes on to advise readers to tailor their insurance plans to their future needs, including when deciding between term and permanent life insurance. Neil adds that while term policies are typically cheaper with coverage for a set period, permanent policies have higher premiums, but offer a savings or investment component.
“Life insurance builds up income tax-free, similar to a retirement plan,” he concludes. “For many people, life insurance can be a form of forced savings if they’re not otherwise putting money away. However, whole life policies can be expensive and may not be affordable for those in growth mode.”