indexed universal life insurance for kids

Discover how the CollegePLUS IUL from The Policy Shop helps parents protect their child’s future college savings — and health — with living benefits. (How My Child’s College Fund Also Became a Safety Net — Thanks to Living Benefits in a CollegePLUS IUL)

A Parent’s Worst Fear: What If Something Happens?

When I became a parent, I started thinking differently — not just about the next few years, but about the what-ifs. What if my child gets seriously ill one day? What if something happens that derails her dreams — and our finances?

We all hope it never comes to that. But I wanted to be prepared. That’s why I chose the CollegePLUS Indexed Universal Life (IUL) policy from The Policy Shop. Unlike traditional savings plans, this IUL doesn’t just build college funds — it also offers a living benefits rider, which allows access to the policy’s death benefit if my child is diagnosed with a qualifying illness.

It’s not a conversation many parents want to have — but it’s one I’m thankful I thought through.

Why Living Benefits Matter — Even for Young Policyholders

What Are Living Benefits?

Living benefits, also known as accelerated benefit riders, allow the insured to access a portion of the death benefit while still alive if diagnosed with a chronic, critical, or terminal illness. With the CollegePLUS IUL, this rider is included, not just as a financial safeguard, but as a compassionate safety net.

That means if something unexpected were to happen — like a cancer diagnosis, organ transplant, or long-term disability — my daughter would have a financial cushion, no questions asked.

College Savings That Won’t Vanish in a Crisis

Unlike a 529 plan or savings account that could be wiped out by emergency medical expenses, the CollegePLUS IUL protects the college fund and provides additional resources through its living benefits. This policy isn’t just for education — it’s a multi-purpose financial foundation.

Real Example — How a Friend’s Story Changed My Planning

A close friend of mine had a child who was diagnosed with leukemia at age 12. The family had a 529 plan, but they were forced to drain it — plus borrow — to cover the cost of treatment and time off work.

That’s when it hit me: if I could structure a plan that grows and protects — why wouldn’t I?

With my daughter’s CollegePLUS IUL, I know that:

• Her cash value is growing each year for college
• If the unthinkable happens, she can access funds for medical or lifestyle needs
• The policy’s death benefit doesn’t go to waste — it can be used while living, if needed

4 Reasons I’m Grateful for the Living Benefits in Our CollegePLUS IUL

1. Protection Without Trade-Offs: We don’t sacrifice growth for protection — we get both.
2. College and Care: The same plan that builds her future education fund could also cover future medical needs.
3. Family Financial Security: If something happens, we won’t have to dip into retirement or go into debt.
4. Peace of Mind: I sleep better knowing her plan is built for both dreams and reality.

The CollegePLUS IUL vs. Traditional College Plans

While 529 plans are a popular savings tool, they come with restrictions and no safety net if something goes wrong. Here’s how the CollegePLUS IUL compares:

As a parent, flexibility and safety matter to me just as much as growth — and that’s why this plan wins.

FAQs – What Other Parents Want to Know

Q1: Can I access the money if there’s a family emergency?

Yes — as the policyholder, you can access the cash value tax-free through policy loans for any purpose, including emergencies, not just college.

Q2: What happens if my child doesn’t go to college?

That’s the beauty of this IUL — it’s not limited to education. Your child can use it to buy a home, start a business, or supplement retirement down the road.

Q3: How do living benefits work?

If your child is diagnosed with a covered illness, a portion of the death benefit can be accessed early to help with medical expenses, lost income, or long-term care needs.

Q4: Will this affect financial aid eligibility?

Since life insurance is generally not counted as an asset in FAFSA calculations, it can have less impact on aid compared to traditional savings plans.

Final Thoughts — Planning for Possibility, Not Just College

The CollegePLUS IUL gives me peace of mind that my daughter’s future is protected — in more ways than one. We’re building a college fund, yes, but also preparing for the unknown.

To me, that’s real financial planning — not just saving, but protecting, growing, and future-proofing what matters most.

Ready to Future-Proof Your Child’s College Fund?

Whether you’re just starting to save or looking for smarter alternatives to traditional 529 plans, the CollegePLUS IUL is a powerful option worth exploring.

👉 Schedule your free consultation with an advisor at The Policy Shop to see if this plan is right for you!