College Funding with IUL

In today’s world, the dream of providing our children with a quality education is often met with the harsh reality of rising college costs. As parents, we’re constantly seeking innovative solutions to ensure our children have access to the opportunities they deserve. Enter the CollegePLUS Indexed Universal Life insurance (IUL), a strategic tool offered by The Policy Shop that can pave the way for your child’s college education.

What sets the CollegePLUS IUL (IUL for kids) apart?

To grasp its potential for college savings, let’s first understand its essence. IUL stands as a permanent life insurance policy, guaranteeing coverage for as long as the policyholder lives and maintains premium payments. A segment of the CollegePLUS IUL is dedicated to a fixed death benefit, remaining unchanged, while the remaining portion is invested in an interest-bearing account, nurturing cash value growth.

One key feature of CollegePLUS IUL is its interest rate guarantee, ensuring that even in the face of market downturns, the cash value segment receives a minimum guaranteed interest rate. With various IUL options available, including fixed and variable policies, the cash value component serves as a versatile resource, ready to fund expenses like your child’s college education.

Here are three compelling reasons why CollegePLUS IUL should be on your radar for college funding:

Tax Advantages: The cash value segment of the CollegePLUS IUL enjoys tax-deferred status as long as the policy remains funded. Furthermore, certain withdrawals from the policy may be deemed tax-free, offering a valuable financial advantage. Loan distributions taken from the cash value are typically tax-free as well, provided they are repaid over time.

Lower Investment Risk: With CollegePLUS IUL, you can finance college expenses without compromising the death benefit. A portion of your premium payments contributes to the cash value, which continues to grow at a guaranteed minimum rate, regardless of market fluctuations. This shields you from the uncertainties of market volatility, providing peace of mind.

Financial Aid: Unlike other assets,  the CollegePLUS IUL, is typically not considered in financial aid calculations. This means that the cash value of your policy won’t count against you when determining eligibility for financial aid, offering a strategic advantage in funding your child’s education.

As college costs soar and the need for effective savings strategies intensifies, CollegePLUS IUL emerges as a powerful long-term solution. By allowing the cash account to mature over time and refraining from premature withdrawals, you can maximize the potential of your IUL policy to fund your child’s college journey.

It’s important to note that maintaining a minimum cash balance may be required to keep your CollegePLUS IUL policy active, a requirement that varies among insurers. Nevertheless, with CollegePLUS IUL from The Policy Shop, you can confidently explore new avenues for securing your child’s educational future.

Ready to embark on this transformative journey?

Contact The Policy Shop today to discover how CollegePLUS IUL can unlock the door to your child’s dreams of higher education.

“In a world where the dream of providing our children with a quality education often collides with the harsh reality of soaring college expenses, the CollegePLUS Indexed Universal Life insurance (IUL) from The Policy Shop serves as a beacon of hope and strategic foresight. With its tax advantages, lower investment risk, and unique eligibility for financial aid, CollegePLUS IUL embodies both the sentimentality of parental love and the wisdom of financial planning, nurturing the seeds of our children’s educational aspirations into flourishing realities.” – Jonathan Globerman, Co-founder & CEO, The Policy Shop