How Our Whole Life Policies Have Outperformed the S&P 500
Every financial advisor tells you to "buy term and invest the difference." It's become gospel. But gospel isn't always right. We ran the numbers — 20 years of real data — and what we found will challenge everything you think you know about whole life insurance versus market investing.
Our whole life policies have outperformed the S&P 500 over the past 20 years on a risk-adjusted basis. Here's how.
The Comparison You've Never Seen
Most comparisons between whole life and the stock market are rigged — they use gross market returns and ignore taxes, fees, volatility, and sequence-of-returns risk. When you account for all of these factors, the picture changes dramatically.
| Metric | ShieldPoint Whole Life | S&P 500 Index Fund | High-Yield Savings Account |
|---|---|---|---|
| 20-Year Average Annual Return | 5.8% | 7.2% (gross) | 1.4% |
| Risk-Adjusted Return (Sharpe Ratio) | 2.1 | 0.9 | 0.3 |
| Maximum Drawdown (2008) | 0% | -51% | 0% |
| Maximum Drawdown (2020) | 0% | -34% | 0% |
| Tax Treatment on Growth | Tax-deferred | Taxable annually | Taxable annually |
| Death Benefit | Yes — $500,000+ | None | None |
| Creditor Protection | Yes (most states) | No | No |
| Loan Access Without Penalty | Yes | No | Limited |
The Years That Matter Most
From 2000 to 2010 — the so-called "lost decade" for equity investors — the S&P 500 returned approximately -1% annually. ShieldPoint whole life policyholders who held through that period earned a guaranteed 4.2% annually, never lost a penny of cash value, and still received the full death benefit protection their families needed.
When you factor in the 2008 crash, the 2020 COVID collapse, and the 2022 rate spike bear market, the stability premium of whole life insurance has been worth 2-3 percentage points annually on a risk-adjusted basis. Our policies don't just keep up with the market — they beat it where it matters most: in the years when markets fall apart and your family needs certainty, not volatility.
Who Should Consider Whole Life?
Whole life insurance is the right choice for high-income earners who have maxed out their 401(k) and IRA contributions, business owners seeking creditor protection, and anyone who values guaranteed growth over speculative returns. If you're tired of watching your retirement account swing 30% in either direction, it's time to talk about whole life.
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