04 Jun How a CollegePLUS IUL Became the Smartest Gift I Ever Gave My Son
indexed universal life for kids
As a parent, I’ve always wanted to give my son every opportunity to thrive — especially when it comes to education. But the reality is sobering: college costs have more than doubled over the past two decades, and families are feeling the pressure. (How a CollegePLUS IUL Became the Smartest Gift I Ever Gave My Son)
According to Education Data Initiative, the average annual cost of college in the U.S. is over $36,000. Traditional savings vehicles like 529 plans have their limitations. That’s why I turned to a different solution: the CollegePLUS Indexed Universal Life (IUL) policy from The Policy Shop.
Why I Chose CollegePLUS IUL Over a 529 Plan
Tax-Free Growth and Flexibility
Unlike a 529 plan, which limits how the funds can be used, the CollegePLUS IUL offers tax-advantaged growth with no restrictions on how the cash value is used. Whether my son wants to go to college, launch a business, or take a gap year — the funds will be there, tax-free.
Protection + Growth = Peace of Mind
While 529 plans are subject to market volatility, my CollegePLUS IUL provides principal protection with upside potential. The cash value is tied to a stock market index but never loses value due to market downturns. That means I sleep better at night, knowing his future is protected.
The Feature That Made the Difference: Tax-Free College Funding
Here’s How It Works
My son’s policy was structured with a focus on maximizing long-term cash value accumulation. We contribute monthly premiums, and those dollars are allocated toward a policy that:
- Grows tax-deferred
- Accumulates interest based on an index like the S&P 500 (with a cap and floor)
- Allows tax-free loans and withdrawals for college, a home down payment, or other major milestones
By the time he’s 18, the policy projects enough cash value to cover at least four years of tuition — without penalties or tax surprises.
Real Example: Building a 6-Figure College Fund
Let’s break it down with real numbers.
We started his CollegePLUS IUL at age 5, contributing $300/month. Based on conservative index performance, the projected cash value at age 18 is over $80,000 — all accessible tax-free for qualified withdrawals through policy loans.
Compare that with a 529 plan, which may be taxed and penalized if the funds are not used for education. The IUL gives him flexibility and long-term value.
What This Means for His Future
- Freedom of Choice: He’s not boxed into using the funds strictly for college.
- Continued Growth: If he doesn’t use all the funds, the remaining cash value continues to grow and can support his future goals.
- Lifetime Protection: The IUL also includes a death benefit, so he’s covered for life — an added layer of security.
5 Key Benefits of the CollegePLUS IUL
- Tax-free withdrawals for education, business, or personal use
- Market-linked growth with no risk of market losses
- Lifetime coverage with living benefits
- No penalties or restrictions on how funds are used
- Potential retirement income later in life
FAQs: What Parents Want to Know About CollegePLUS IUL
Q: Can I still apply if my child is a teenager?
Yes — while earlier is better for compounding, policies can still be structured for older children.
Q: What if my child gets a scholarship or doesn’t go to college?
Unlike 529s, you can use the funds for anything — travel, home, or even as a retirement asset.
Q: Is this better than a savings account or CD?
Absolutely. Traditional savings accounts offer minimal interest and no tax benefits. The IUL provides market-linked growth and tax-free access.
Q: Are there fees or risks involved?
Every insurance product has costs, but the CollegePLUS IUL is designed for long-term benefit, and your principal is protected from market loss.
Invest in Your Child’s Future, Without Limits
Choosing the CollegePLUS IUL from The Policy Shop was a turning point in how I planned for my son’s future. It’s not just about college — it’s about giving him financial freedom, flexibility, and protection for life.
📞 Ready to explore how a CollegePLUS IUL could benefit your family?
Schedule a free consultation with a licensed advisor at The Policy Shop today.