At SecureLife Financial, we believe that investing in education is one of the most significant gifts you can give to your children or loved ones. Our College Savings Planning services are designed to help you prepare for the rising costs of higher education by creating a personalized strategy that aligns with your financial goals.

Funding for College using an Indexed Universal Life Insurance (IUL) can be a much better solution than a 529 plan. An IUL can be used ANY WAY the policy holder wishes.  Pay for college, purchase a house, take a trip, all tax free using participating policy loans.  If you do not use the 529 college plan for qualified college expenses, you will pay a 10% penalty and be subject to income taxes.  Also 529 plans are subject to tax and penalty if distributions are for colleges outside of the United States.  You are limited as to how much you may contribute to a 529 plan, while IUL contributions are virtually unlimited, since they are limited only by the amount of life insurance you can qualify for.  Rules and restrictions with a 529 plan may keep you from paying other needed expenses (health care, bills, emergencies).

An IUL provides for a very safe and conservative growth since the money grows by indexing the markets.  Your account balance can only go up and you will NEVER get a negative return with a properly structured policy.  The cash value inside the IUL is also TAX FREE.  Most 529 plan investments may suffer losses.

Any distributions from a 529 plan that is owned by a third-party are counted as untaxed income, and they may hurt your child’s chances of qualifying for financial aid.  However, life insurance is not included in financial aid analysis, while assets in a 529 plan may be.