Building A Bright Future
Setting up a properly-designed IUL for your child as early as possible is an incredibly effective savings strategy that can put them on a fast track to financial success as they reach adulthood.
Don't wait another day to secure your child's financial future. IUL for Kids offers a unique and powerful combination of protection, savings, and growth potential to ensure that your child has every opportunity to thrive.
What is an Indexed Universal Life?
Indexed Universal Life (IUL) is a unique life insurance plan designed to provide financial security and long-term growth potential. It not only offers the protection and peace of mind that life insurance brings, but also acts as a powerful savings vehicle that can help fund your child's future endeavors, such as education, a down payment on a home, or starting a business.
What is compound interest?
Compound interest in an Indexed Universal Life insurance policy means your savings grow over time, with the interest you earn adding to your account and making your money grow faster. And because you don't have to pay taxes on the growth until you use the money, it's a smart way to save for the future while still having access to your funds when you need them. When the time comes, that cash value can be strategically accessed through participating loans, allowing them tax-free access to that cash value.
Savings & Earning Interest
When you pay money into your IUL policy, some of it goes into a savings account called the cash value. This money earns interest over time, like when you put money in a bank account and it grows a little bit each year.
Growing Faster with Compound Interest
With compound interest, the interest you earn doesn't just sit there—it gets added to your savings. So not only does your initial money earn interest, but the interest you've already earned starts earning interest too. It's like a snowball rolling downhill, getting bigger and bigger as it picks up more snow.
Increasing Value Over Time
As your cash value grows with compound interest, it becomes more valuable over time. This means that even if you don't add more money to your policy, the money you've already put in can grow into a larger sum over the years.
Tax Benefits
The good news is, you don't have to pay taxes on the interest you earn in your IUL policy until you take the money out. This can help your savings grow even faster because you're not losing any money to taxes along the way. When the time comes, that cash value can be strategically accessed through participating loans, allowing them tax-free access to that cash value.
Flexible Access
While your money is growing with compound interest, you can still access it if you need to. You can take out some of the cash value as a loan or withdrawal for things like emergencies, college expenses, down payment on a house, or retirement income.
Living Benefits Lives Within Your Child's IUL
Living Benefits life insurance ensures that you have access to crucial money when you - and they - need it most. If they suffer a major illness or injury, you'll be able to accelerate the policy's death benefit while still living. Add in the fact that it costs the same as traditional life insurance, and getting Living Benefits is an easy decision.
Why IUL?
Harness The Power of Compound Interest
IUL allows parents to leverage the immense power of compound interest over time to grow their child's savings. By starting at a young age, parents can maximize the ability for that money to grow over the years. Even a small monthly contribution of $50-$150 per month can add up in a huge way by the time that child reaches adulthood.
Unique Tax Advantages
IUL for Kids also offers tax advantages that can further enhance your child's financial growth. The cash value grows on a tax-deferred basis, meaning your child won't pay taxes on the growth as their policy is funded through the years . When the time comes, that cash value can be strategically accessed through participating loans, allowing them tax-free access to that cash value that is usually only seen in Roth IRAs or municipal bonds.
Locking In Lifetime Protection
One welcome side effect of setting up IUL as a savings vehicle is the life insurance protection it establishes for your child at a young age, locking in their good health and establishing permanent coverage into adulthood. Our IUL plans even come with free Living Benefits features, which allow access to the life insurance portion of the plan if there is a serious illness or injury at any point in the insured's lifetime.
Teaching Financial Responsibility
We believe in the importance of teaching financial responsibility from a young age. IUL for Kids can serve as an invaluable tool to help your child understand the fundamentals of saving, investing, and managing money. By actively involving them in the financial planning process, they can learn valuable life lessons that will set them up for success as they navigate adulthood.