Bitcoin life insurance is offering BTC hodlers new tax advantages

As interest in cryptocurrency has grown over the years, so too have the myriad applications for its use. The OG cryptocurrency, Bitcoin, is no exception, as evidenced by 2024’s explosion of interest in exchange-traded funds, Bitcoin decentralized finance and ordinals.

One such new use case for Bitcoin (BTC) is its role in the life insurance industry, pioneered by Meanwhile, which describes itself as the “first and only life insurance company denominated in Bitcoin.”

On Episode 14 of The Agenda podcast, hosts Jonathan DeYoung and Ray Salmond spoke with Danny Baer, Meanwhile’s director of wealth and asset management, to discover how Bitcoin-denominated life insurance works and learn about the tax benefits it offers BTC hodlers.

What is Bitcoin life insurance?

Baer said that Meanwhile offers a whole life insurance policy, meaning customers are covered for their entire lives rather than a limited term. The difference between Meanwhile and its mainstream competitors is that the company denominates its policies in Bitcoin — in fact, its entire operations are denominated in the asset.

“Rather than paying your premiums in dollars or having your life insurance policy grow in terms of dollars, or borrowing against your life insurance policy in dollars, or when you die, your life insurance policy paying out to your beneficiaries in dollars, all of that happens in Bitcoin,” Baer said.