IUL for a Kid?

Let's suppose, I can afford $50/month, what's the best IUL out there for my kid that's 6 years old? In 12 years, will it generate at least $25K in cash value?
 
My son's IUL doesn't look that great on paper until after the 35th year when the compounding really starts to kick in. You have to remember that these plans are for THE LONG term.
 
Let's suppose, I can afford $50/month, what's the best IUL out there for my kid that's 6 years old? In 12 years, will it generate at least $25K in cash value?


This is the problem with "college funding". The average middle class american does not have the spare income to properly fund for college. Nor do they have any idea how much it costs to save for college.

$50/ month equals $600 per year.

$600/y x 12 years= $7,200

As Vol pointed out, you would need a constant 21% yearly gain to achieve what you want.

Realistically, with an IUL you will have a 4%-5% gain (at best) over 12 years.
So you would need almost triple the $50/m to achieve what you would like to.


Most "college savings" should really have been earmarked as "retirement savings".

I met a guy once who said he saves $5k/year for his 2 kids to go to college. But he only saves $2k/year for his own retirement.
I asked him if his kids will make enough to support him in old age.... :no:
(because most dont, and $5k/y for 2 kids is paying for community college, not ivy league)
 
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Let's suppose, I can afford $50/month, what's the best IUL out there for my kid that's 6 years old? In 12 years, will it generate at least $25K in cash value?

The Gerber Life college plan is a good start, simply because, like a UL, the premium is flexible, but it seems that in with only 12 years to work with, a non-qualified flex-premium guaranteed annuity would be more helpful. It would take more than 50 bucks a month though. In fact, I would even lean toward a variable annuity.
 
This is the problem with "college funding". The average middle class american does not have the spare income to properly fund for college. Nor do they have any idea how much it costs to save for college.

$50/ month equals $600 per year.

$600/y x 12 years= $7,200

As Vol pointed out, you would need a constant 21% yearly gain to achieve what you want.

Realistically, with an IUL you will have a 4%-5% gain (at best) over 12 years.
So you would need almost triple the $50/m to achieve what you would like to.


Most "college savings" should really have been earmarked as "retirement savings".

I met a guy once who said he saves $5k/year for his 2 kids to go to college. But he only saves $2k/year for his own retirement.
I asked him if his kids will make enough to support him in old age.... :no:
(because most dont, and $5k/y for 2 kids is paying for community college, not ivy league)

Last time I checked, there were no loans for retirement...I see this too frequently as well.
 
Any carrier will write an IUL for kids under 18. They just wont get preferred or super preferred rates. Everything is written at standard non Tobacco rates.

I have IUL policies on my 6 and 7 year old kids. I don't mind paying the premium because as time passes by I know that when my kids grow up the will have access to cash if needed. Plus they get to retire very comfortable at age 60. I just need to find a way to teach them that they can never let this policy lapse. They need to understand that this is a monthly payment they need to make for all of their lives. I think that when they are old enough to understand a policy illustration, they will keep the policy in force. (I hope.)
 
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