06 Sep The CollegePLUS IUL from The Policy Shop | index universal life insurance policies for children
Index universal life insurance for your child
Lately, there’s been a growing interest in index universal life insurance policies for children.
With an IUL, your cash value grows based on an index you select, such as the S&P 500. However, your child’s funds aren’t directly invested in the index, but they are linked to the index and still benefit from the index performance. By using this strategy, your child’s funds grow based on the positive performance, but are protected from losses, meaning you cannot have a negative year lose your principal or accumulated interest.
Now, let’s delve deeper into the advantages of The CollegePLUS IUL:
- Market-Like Returns with Downside Protection: While traditional investments may experience volatility, The CollegePLUS IUL shields your child’s savings from market losses, while maintaining the potential upside of market-based returns.
- Access to Tax-Free Funds: As a form of permanent life insurance, The CollegePLUS IUL offers tax-deferred growth and tax-free withdrawals through participating loans, making it an ideal option for funding educational expenses or any major life event.
- Lifetime Coverage with Living Benefits: Unlike other savings vehicles, The CollegePLUS IUL policy provides lifelong coverage, ensuring your child’s financial security well beyond their higher education years.
Moreover, the cost of insurance for children is minimal, making The CollegePLUS IUL a cost-effective and versatile savings tool. Structured properly, it offers unparalleled flexibility and growth potential for your child’s future.
Consider this scenario: By contributing just $100 a month, your newborn child could accumulate over $1 million in cash value by the age of 65. This nest egg could provide a tax-free income stream of $75,000 per year for life, offering financial security well into retirement.
The bottom line? The CollegePLUS IUL policy, from The Policy Shop, is the most flexible and powerful savings vehicle for children on the market. The earlier you start, the greater the potential for long-term growth and financial stability.
If you’re interested in structuring a CollegePLUS IUL policy for your child, our Policy experts are ready to provide all the information you need and help you build the perfect policy for you and your family!
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