College Funding with an IUL
Do you have young families within your clientele? If so, funding a college education is always a hot topic. Why not do it with a Dual Purpose Life Insurance product?
Case Study: Evangeline is a 34-year-old single mother, in great heath, with a 2-year-old son. Evangeline needs a reliable plan that will not only protect her son Sam should something happen to her, but also create an alternative source of college funds and retirement income.
Evangeline's advisor recommends an indexed universal life insurance policy to meet her multiple needs:
- Evangeline pays an annual premium of $6,000 a year for 15 years
- In year 16, Evangeline stops paying premiums and starts taking tax-free distributions from the policy for 4 years to help pay for Sam’s college expenses of $20,000 a year.
- After the 4 years is up, Evangeline starts to pay the $6,000 annual premium again until retirement age of 65
- Over the next 15 years, she then takes out tax-free funds to supplement her retirement income of $40,000 a year.
Total premiums paid in over the course of the policy is $156,000.
Total distributions over the course of the policy totals $680,000 with a residual death benefit of $308,393 when distributions stop.
Evangeline has successfully helped fund her son's college tuition and also supplement retirement income within the same life insurance policy.
BUA has multiple products that fit this highly competitive market. We can help you plan for the “Evangeline” in your book of business. Keep in mind, she may have a different name!
Call your Brokerage Sales Manager today!