IUL vs. 529 Education Savings Plans

Published by Future Picture Team on September 11, 2021

THE CHALLENGE

Darrell and Christine, age 35, felt they needed life insurance protection for Christine and their two young children in the event something happened to Darrell, who was the primary means of support. The couple also wanted to have the option to help their children pay for their education.

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Based on the client’s preferences, cash ﬂow needs, and budget, we designed their custom education plan

THE SOLUTION

Sonny and Maureen’s financial adviser suggested they each purchase an IUL policy, naming each other as the beneficiary and their children as contingent beneficiaries. The IUL policies would protect their future while creating the potential to provide future supplemental retirement income.

Each policy would be funded with the maximum premium (stopping short of the point where withdrawals become taxable) to generate additional accumulation value, which could later be borrowed, tax-free, to supplement retirement income.