🎓 The Smart Way to Fund College: IUL for Kids
🎓 The Smart Way to Fund College: IUL for Kids
What if you could save for your child’s education — tax-free, with no market downside — and still give them a legacy for life?
That’s not just possible. It’s exactly what an IUL policy can do.
📘 What Is an Indexed Universal Life (IUL) Policy?
An IUL is a flexible life insurance policy that builds tax-advantaged cash value over time. It’s tied to the performance of an index like the S&P 500 — without risking principal during market drops.
That means:
✅ Tax-free growth
✅ No loss in market downturns
✅ Tax-free loans for education, weddings, or first homes
✅ Permanent life insurance coverage
Parents, grandparents, and guardians can open a policy on a child while premiums are low, giving the policy decades to grow.
🎯 Why Use IUL for College Funding Instead of a 529 Plan?
529 college savings plans are popular — but they come with restrictions and market risk.
Compare the two:
Feature529 PlanIUL PolicyMarket Loss RiskYesNo (0% floor)Tax-Free WithdrawalsYes (qualified)Yes (via policy loan)Use RestrictionsEducation OnlyAny PurposeFinancial Aid ImpactHighLowDeath Benefit IncludedNoYesLocked ContributionsYesNo (flexible)
💡Bottom Line: IUL gives you more control, protection, and flexibility — while also leaving a legacy behind.
🧠 How It Works
Parent/Grandparent opens an IUL for a child (ages 0–17)
Contribute monthly or annually (e.g., $100–$250/mo)
Cash value grows over time, protected from market losses
By college age, the child has a pool of tax-free funds available
Policy stays in force — offering lifetime coverage and future borrowing ability
You’re not just funding school — you’re funding life.
❤️ Real Use Cases from Ai Merchantry Families
Sarah and James opened a $150/month IUL for their newborn. By age 18, the policy projected over $40,000 available tax-free.
Grandpa Mike gifted IULs to each of his 3 grandkids. Instead of college-only funds, he gave them a financial tool they can use forever.
Entrepreneur Parents chose IULs over 529s so their kids wouldn’t be penalized if they decided to skip college and build a business instead.
💡Don’t Just Save for School — Build a Foundation for Life
College is a season.
A smart financial tool is for a lifetime.
An IUL policy can grow with your child, funding college and giving them a lifelong asset.
✅ What We Do at Ai Merchantry
We help families across the U.S. set up tax-smart, future-focused IUL plans for kids — often starting with as little as $50–$250/month.
We only work with top-rated carriers like:
National Life Group
Foresters Financial
Ameritas
Allianz
F&G
…and more.
Our team of advisors walks you through every step — with transparency, integrity, and care.
📥 Download: “The IUL for Kids Guide”
Learn everything you need to know in our free, one-page white paper:
IUL vs. 529 comparison
Sample funding amounts
Growth timelines
FAQs and real-life examples
Download Now – “The IUL for Kids Guide”
👨👩👧👦 Talk to an Advisor About Your Child’s Future
This could be one of the smartest gifts you ever give your child.
Whether you're a new parent or a proud grandparent — we’ll help you build a future worth funding.
