Bitcoin, the Blockchain, and How Crypto is Changing Life Insurance and Estate Planning

November 20, 2021
Written by: Steven Gibbs | Last Updated on: July 14, 2025
Fact Checked by Jason Herring and Barry Brooksby (licensed insurance experts)

Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.

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🔑 Key Takeaways

  • Meanwhile Insurance is the world’s first fully regulated Bitcoin-denominated life insurance company (launched 2024)
  • $40 million Series A funding raised in April 2025 for global expansion
  • MassMutual’s $100M Bitcoin investment has 5X in value since 2020
  • Tax advantages: Bitcoin life insurance offers stepped-up cost basis on policy loans
  • Estate planning solution: Eliminates cryptocurrency inheritance complexities

Bitcoin and Life Insurance: The Current Landscape

If you do a simple search like “Bitcoin and Life Insurance” a flurry of articles with numerous concerns pop up. Topics of interest concern things like, whether life insurers are poised to begin accepting bitcoin OR the involvement of major life insurers in either purchasing large amounts of bitcoin or increasing involvement in the fast emerging arena of assisting consumers with bitcoin (crypto) investing.

📊 Quick Facts: Bitcoin Life Insurance Market 2025

  • Meanwhile Insurance: 220.4 BTC in assets, 300% YoY income growth
  • Only 10.8% of crypto holders have insurance for digital assets
  • 41.9% would purchase crypto insurance if available
  • Bitcoin ETF inflows: $14.4 billion in 2025 through July

🚀 Meanwhile: The Bitcoin Life Insurance Breakthrough

🆕 2025 Major Development

Meanwhile Insurance Bitcoin (Bermuda) Limited has revolutionized the space by becoming the world’s first company to offer life insurance policies denominated entirely in Bitcoin. This isn’t theoretical anymore—it’s real, regulated, and operational.

How Meanwhile’s Bitcoin Whole Life Works

Founded in 2022 by CEO Zac Townsend and CTO Max Gasner, Meanwhile graduated from Bermuda’s innovation sandbox in July 2024, becoming the first fully licensed Bitcoin-denominated life insurer.

The Meanwhile Process:

  1. Fund your policy in Bitcoin: Make 10 premium payments in BTC annually for 10 years
  2. Guaranteed growth: Your Bitcoin grows at 2% annually, tax-free
  3. Access liquidity: Borrow up to 90% of policy value without selling Bitcoin
  4. Secure your legacy: Direct Bitcoin transfer to beneficiaries

Meanwhile’s 2025 Performance

In June 2025, Meanwhile achieved a historic milestone by releasing the first-ever audited BTC-denominated financial statements. The results demonstrate the viability of this new model:

📈 Meanwhile’s 2024 Financial Performance

  • Total Assets: 220.4 BTC
  • Net Income: 25.29 BTC (300% year-over-year increase)
  • Funding Raised: $61 million total, including $40M Series A in April 2025
  • Regulatory Status: Fully licensed by Bermuda Monetary Authority

Life Insurance Companies, Bitcoin and the Blockchain

Bitcoin

One of our favorite mutual dividend paying whole life insurance companies, Mass Mutual, has a particular interest in bitcoin. In December 2020, MassMutual purchased $100 million in Bitcoin (over 5,000 BTC) for its general investment account when Bitcoin was trading around $18,500. The company also acquired a $5 million equity stake in NYDIG, a leading provider of technology and investment solutions for Bitcoin.

💰 MassMutual Bitcoin Investment Performance Update

Original Investment: $100 million (December 2020 at ~$18,500/BTC)
Bitcoin Holdings: Over 5,000 BTC
December 2024 Value: Approximately $500 million (5x increase)
Strategic Partner: NYDIG for institutional Bitcoin services
Investment Status: Continuing to hold position as of 2025

This investment has proven to be a remarkable success story for institutional Bitcoin adoption. The fivefold increase in value over four years demonstrates the potential returns for conservative institutional investors who take measured positions in Bitcoin. MassMutual’s continued holding of the position through market cycles shows their long-term conviction in Bitcoin as a store of value.

The deal between Mass Mutual and NYDIG concerning bitcoin, was predicated on what Mass sees as the increasing involvement of cryptocurrencies in the financial landscape and the demand from financial professionals and their clients to gain bitcoin exposure.

“MassMutual continues to innovate and to lead the pack when it comes to Bitcoin,” stated Robert Gutmann, co-founder and CEO of NYDIG.

📈 Institutional Validation

MassMutual’s Bitcoin success validates the institutional adoption thesis. As a Fortune 500 company (#102) with over $312 billion in assets under management, their continued holding and positive returns on Bitcoin investment provides a compelling case study for other conservative institutional investors considering cryptocurrency allocation.

Blockchain

Other insurance companies are beginning to utilize blockchain technology, a cryptographically assured form of shared record keeping, to prevent insurance fraud and track records, file claims, and more.

For example, Metlife is reportedly using ethereum blockchain technology to add transparency and efficiency to the life insurance claims process.

Other Questions

There are many other various questions related to bitcoin, crypto and the impact on life insurance companies, such as when various life insurance companies will start accepting bitcoin (or other crypto) as payment OR companies insuring crypto holdings.

For example, Lloyd’s of London has an insurance policy that protects cryptocurrency held in online wallets.

Inflation Hedge Strategy and Market Outlook

On the investment front, many are concerned with how bitcoin and crypto stacks up as a hedge against inflation and, more directly, how do these ventures serve as a compliment to various strategies involving high cash value life insurance, often referred to as infinite banking.

📊 2025 Market Trends

  • Bitcoin Performance: +15% in 2025 (outpacing S&P 500’s +7%)
  • Bitcoin Treasury Companies: Growing trend among corporations
  • Regulatory Support: Trump administration established strategic Bitcoin reserve
  • ETF Success: $14.4 billion in net inflows through July 2025

While some, like tech entrepreneur and investor Michael Saylor, consider bitcoin as “digital gold” others are mindful of the turbulent nature of bitcoin and cryptocurrencies and offering reminders that a safe bucket such as high cash value life insurance is still needed.

Some concerns

The central (and oft debated) concern that dominates at the time of this writing is that cryptocurrencies are speculative and risky and if so, how much?

A related concern is the question of how to categorize crypto currencies when investing. The question is whether cryptos are a “currency” or an “equity”. In other words, how to we classify cryptos as an asset?

It seems pretty well accepted that bitcoin is for most, an investment in new technology, specifically the blockchain. And, history appears to support AND many are making the case, that this “investment” is a hugely significant value add which calls to question government control over currencies.

Hedge Against Inflation

Some notables however disagree, such as one billionaire investor, Paul Tudor Jones, who recently told CNBC that he views bitcoin currently as a more favorable hedge against inflation than gold.

Favorable sentiment looking toward bitcoin as a hedge against inflation was also recently echoed by the likes of JP Morgan.

Adding Risk vs Hedging Risk

That said, if you are trying to achieve prudent planning and predictability, which are aspirations to which we strive at I&E, the cautious approach is probably to continue to treat cryptocurrencies as adding risk rather than as a hedge against it, although this line seems to be blurring a bit.

⚠️ Risk Management Principle

Much like stock investing and real estate investing, where market fluctuations bring uncertainty, the same goes for cryptocurrencies. High cash value life insurance remains as a firm foundation for all speculative investing.

The Impact of Cryptocurrencies on Estate Planning

On the estate planning side, numerous concerns arise when dealing with crypto assets such as bitcoin, somewhat similar to those related to other digital estate assets like social media accounts or websites, yet with some distinctions.

The foremost estate planning concern with crypo assets is that if no one knows you have it, and you meet your demise, then its gone.

✅ How Bitcoin Life Insurance Solves Estate Planning Problems

  • No Lost Keys: Professional custodial management eliminates private key risks
  • Guaranteed Transfer: Regulated process ensures beneficiaries receive Bitcoin
  • Tax Efficiency: Stepped-up cost basis on death benefit transfers
  • Global Accessibility: Particularly valuable in inflation-prone economies

Cryptocurrency Access Guide

A great suggestion is to create a cryptocurrency access guide. This may include a number of the suggestions in this article as well as the identification of the wallet as hot or cold and information as to obtaining the private key.

Some important estate planning steps that can be taken to protect cryptocurrencies include:

  1. Share your seed phrase and private keys
  2. Transfer your crypto to a trust and designate successors
  3. Place digital assets in a custody (such as a hardware wallet) or with a custodian service
  4. Use a “dead mans switch” to trigger the transfer of digital assets
  5. Select a cascading multi-signature wallet instead of a self sovereign wallet
  6. Consider Bitcoin life insurance for simplified inheritance

Investment Options for Bitcoin and Cryptocurrencies

At present the investment opportunities in this emerging asset class are evolving. Options for getting into the space include trading platforms (exchanges) such as Coinbase.com, arguably the most established U.S. based exchange, or Crypto.com which is also well established.

💼 Bitcoin Investment Options 2025

Option Best For Key Features
Meanwhile Bitcoin Life Insurance Long-term holders, estate planning Tax-free growth, policy loans, inheritance
Direct Exchange Purchase Active traders Coinbase, Crypto.com, Binance.US
Self-Directed IRA Retirement planning BitcoinIRA.com, Alteira, ITrust
Bitcoin ETFs Traditional investors ProShares BITO, multiple approvals pending

IRA investing in cryptocurrencies is also expanding through several self directed IRA options that are currently occupying the space, which include Alteira, ITrust, and the oldest being BitcoinIRA.com.

Regulatory Outlook for Bitcoin and Cryptocurrencies

Bitcoin and other crypto as been consistently deemed “high risk” and there has been a fair amount of speculation that the government will “ban” or otherwise crack down on cryptos.

🏛️ 2025 Regulatory Environment

  • Presidential Support: Trump administration established strategic Bitcoin reserve
  • Congressional Action: Senate passed the GENIUS Act
  • Institutional Adoption: $14.4 billion in Bitcoin ETF inflows
  • Global Expansion: Bitcoin treasury companies emerging in major markets

As of this writing, the more likely course appears to be increasing regulation and simultaneous adoption of this emerging technology due to its speed, global appeal, better security and cost effectiveness.

One thing appears certain at this point which is that bitcoin and the blockchain are here to stay. Assuredly, blockchain technologies represent a very important step toward the decentralization of money power which is problematic, as we’ve often discussed concerning traditional banking and our monetary system.

Tax Implications and Optimization Strategies

🎯 Bitcoin Life Insurance Tax Advantages

  • Tax-Free Growth: Policy cash value grows without annual tax burden
  • Stepped-Up Cost Basis: Borrowed Bitcoin can be sold immediately without capital gains
  • No Margin Calls: Policy loans secured by Bitcoin collateral
  • Estate Tax Benefits: Death benefits generally income-tax-free to beneficiaries

The tax optimization potential of Bitcoin life insurance represents a significant advantage over direct Bitcoin ownership. Traditional Bitcoin investors face capital gains taxes when they sell, but Meanwhile’s policy structure allows access to Bitcoin’s value without triggering taxable events.

Risk Management and Safe Bucket Strategy

As we’ve often written about and discussed in webinars, if you’re using life insurance policy loans as financial leverage toward higher risk opportunities, such as investment in new technologies (i.e. cool crypto), your crypto ROI stands to improve even more dramatically than it may otherwise if trends continue.

🎯 2025 Strategic Recommendations

For Bitcoin Enthusiasts:

  • Consider Meanwhile’s Bitcoin life insurance for long-term holdings
  • Maintain traditional whole life insurance as your “safe bucket”
  • Use policy loans to leverage into Bitcoin without selling existing positions

For Traditional Investors:

  • Monitor institutional adoption trends (like MassMutual)
  • Consider small Bitcoin allocation through established channels
  • Prioritize high cash value life insurance as your foundation

High cash value life insurance is an asset that remains as a firm foundation for all speculative investing.

Frequently Asked Questions

Q: Is Bitcoin life insurance safe?

A: Meanwhile is regulated by the Bermuda Monetary Authority and operates under the same strict standards as traditional insurers, with independent oversight and enterprise risk management frameworks.

Q: How does Bitcoin life insurance compare to traditional policies?

A: The structure is similar (premiums, death benefits, policy loans), but everything is denominated in Bitcoin rather than dollars, offering potential protection against currency debasement.

Q: Should I replace my traditional life insurance with Bitcoin life insurance?

A: We recommend maintaining traditional whole life insurance as your “safe bucket” foundation and considering Bitcoin life insurance as an additional strategy for Bitcoin exposure.

For personalized guidance on integrating Bitcoin and life insurance strategies into your financial plan, consult with qualified professionals familiar with both traditional insurance and cryptocurrency regulations.

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3 comments

  • Koen Velazquez
    Koen Velazquez

    You’re so awesome! I don’t believe I have read a single thing like that before. So great to find someone with some original thoughts on this topic. Really.. thank you for starting this up. This website is something that is needed on the internet, someone with a little originality!

  • David

    Hi Steve,
    I found your article about Blockchain and the Insurance market on https://www.thinkadvisor.com/ and am interested in your views regarding when there may be insurance products using bitcoin (and possibly stable coins) at the foundation for appreciation and potential yield. With the amount some crypto services are willing to pay in APY, I wonder if/when these become regulated this would open the doors for more attractive wealth-building products. Would like to chat about this at your earliest convenience. You’re welcome to respond via email.
    Thanks,
    David

    • Insurance&Estates
      A
      Insurance&Estates

      Hello David and thanks for connecting. I appreciate your questions; however, as I’m sure you’re aware, the world of crypto is very uncertain right now, mostly, in my opinion due to uncertainties around governmental regulations and intervention. Warren Buffet is on record saying that he wouldn’t pay $25 per Bitcoin?!? So, it is really difficult to predict what companies are going to be doing moving forward, whether with stable coins or other cryptocurrencies. If you learn of anything interesting please feel free to message me back in this stream.

      Best, Steve Gibbs for I&E

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