The Gift of a Lifetime: Why IUL Is More Than Just Life Insurance

Let's face it—life insurance isn't usually top-of-mind when thinking about what to gift your children or grandchildren. But with the world forever changed by recent global events, including the COVID-19 pandemic, many families are reassessing what it means to provide financial security across generations.

Whether you're a parent thinking ahead or a grandparent looking to leave a legacy, one tool stands out: Indexed Universal Life insurance (IUL). It's more than just a policy, it's a smart, flexible strategy to help the next generation build wealth, establish insurability, and create future financial independence.

Here's how starting an IUL early for a child or grandchild can transform into one of the most powerful financial decisions you make for them:

1. Early Insurability = Lifelong Protection

Health is unpredictable, and securing insurability early ensures your child or grandchild has protection regardless of what happens later in life. By locking in coverage while they're young and healthy, you're giving them a foundation of financial security that lasts a lifetime—including a death benefit that protects their future family.

2. Lower Costs + Greater Growth Potential

Buying life insurance at a younger age generally means much lower cost of insurance (COI). These savings boost the policy's cash value potential over time. When paired with an indexed strategy, the IUL policy provides growth tied to a market index—without the risk of market losses. With time on their side, the accumulation potential is significantly higher than if the same policy were started in adulthood.

3. Affordable to Start – Flexible to Grow

IULs are flexible by design. Parents or grandparents can start with small monthly contributions—as little as $30, $45, or $60/month—and let the policy grow over time. Once the child reaches adulthood (often around age 22), ownership and responsibility can transfer to them. From there, they can increase contributions as their income grows, maximizing the policy's long- term value.

4. Tax-Advantaged Retirement Income

When properly structured, an IUL can provide tax-free supplemental retirement income through policy loans and withdrawals. Since contributions are made with after-tax dollars, there are no income taxes on gains when accessed properly offering a hedge against rising future tax rates. This turns the policy into a long-term savings tool, not just an insurance product.

5. Access to Living Benefits

Most modern IULs include Living Benefit Riders, allowing the policyholder to access funds in case of terminal, critical, or chronic illness. This can help cover unexpected healthcare costs without dipping into other savings or retirement assets.

6. The Gift of Daily Impact

Think about it this way:

• $1 a day = $30/month
• $1.50 a day = $45/month
• $2 a day = $60/month

These small daily amounts can jumpstart a lifetime of financial security for your child or grandchild. When reframed as a simple daily habit, building a future for your loved one becomes both manageable and meaningful.

Why Now?

Starting early gives your loved ones a powerful combination of time, protection, and opportunity. It's a financial gift that keeps growing, providing long-term security and legacy planning. And with today's flexible IUL products, the ability to fund retirement, protect against health risks, and build wealth is more accessible than ever before.

Whether it's for a first birthday, high school graduation, or just because you care, an Indexed Universal Life policy could be the most valuable "gift of life" you ever give.