Mother Taught Importance of Wealth Building Through Life Insurance – Business Insider

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Women live longer than men, and women are the primary breadwinners in 40% of American households. A woman will most likely outlive her male partner and may also be a caregiver for elderly parents. This makes it especially important for women to plan in advance for how they’ll live and guard their health later in life.

As we celebrate International Women’s Day, Personal Finance Insider wanted to highlight women empowering each other — and helping each other build wealth in the process. In the words of Aretha Franklin and Annie Lenox, “Sisters are doin’ it for themselves, mothers and their daughters too.” 

For Ebony Ruffin, founder of Ruffin Consulting Services, a business consulting firm providing life insurance solutions to families and businesses, an unlikely gift from her mother put her on the path to build generational wealth, and it even started her path in the life insurance industry. 

She received whole life insurance as a graduation gift

Shortly before Ruffin started college, Ruffin’s mother gifted her with a whole life insurance policy. “My initial reaction was, I’m going to college, not passing away,” Ruffin said, adding that at the time she didn’t fully understand the gift that her mother gave her.


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However, as she majored in business administration and interned with financial services companies, she later realized the value and importance of the life insurance policy she received.

“Seeing the cash value accumulate in the account helped me understand the importance of permanent life insurance to build wealth,” Ruffin said.

There are two types of life insurance: permanent life and term life. Term life insurance lasts for a specified period, and when it’s up you can reapply for coverage, but the premiums most likely will go up as you age and your health deteriorates. Permanent life insurance never expires, has a death benefit for your beneficiaries, and a cash value that you can use during your lifetime. It’s like owning a home, where you gain equity that can be used as collateral — and your home can be left to your heirs leaving a legacy. 

You can take a loan on the cash value or use it as collateral …….