Help Your Clients Protect Their Child's Future With an IUL

May 26, 2022

Key takeaways:

  • IULs provide lifelong coverage
  • There are living benefit riders to modify the policy
  • IULs use indexed stocks to grow the cash value of the policy
  • The cash value, death benefit and premiums of an IUL can be adjusted

Throughout life, many milestones present themselves as opportunities for protection. As a life insurance agent, you can help your clients prepare for those milestones with insurance solutions that can keep them covered for whatever life has in store.

Of the list of milestones, having or adopting a child is a huge readjustment for your clients financially and in terms of what they want to protect. With that in mind, it’s a great opportunity to help them protect their child’s future with insurance. An indexed universal life policy is ideal for lasting coverage that allows them to build wealth and give their children the keys to financial success.

Permanent coverage

An indexed universal life policy (IUL) is the perfect insurance solution for permanent protection. With an IUL in place, your clients can build a foundation of coverage for their children that can be adjusted when necessary. Coverage for an IUL is permanent, meaning your clients will benefit from coverage that will last their children’s entire lives.

What’s more, with an IUL your clients can earn wealth off their policy which uses indexed stocks to impact the growth of the cash value component. With an IUL your clients can invest further into their child’s future with a growth potential that is not fixed.

Flexible riders

There is a long list of riders that can help your clients modify their coverage to meet their child’s needs. Specifically, living benefits riders are perfect for helping your clients secure permanent coverage for their children.

Also known as accelerated benefit riders, living benefits riders will give your clients’ children financial protection while they’re alive. For instance, the waiver of premium rider lets your clients skip payments if they become seriously injured or disabled.

A long-term care rider would provide a payout for your client to help pay for care if they become unable to perform two of six basic daily activities required to secure long-term care.

Adding a rider to your client’s IUL will increase the price of the premiums, but it will help make sure that their child’s future is covered for every scenario.

Adjustable protection

IULs are great for permanent coverage since your client will have the ability to adjust the coverage while it’s in force. Starting a life insurance policy for someone who’s still very young can be tricky. It’s hard to consider lifestyle habits that haven’t been developed yet. With that in mind, having the ability to adjust your policy should be very appealing to new parents looking to protect their children.

Everything from premiums and the cash value to the death benefit itself can be adjusted based on the indexed gains of the policy as well as your client’s need for coverage.

Build Wealth

A substantial benefit for IULs is their ability to build and grow wealth. If your clients are concerned about setting up their children financially (beyond a death benefit) then an IUL makes sense. Unlike other forms of whole or permanent life insurance, an IUL invests the yearly interest income of the bonds associated with the policy to generate a profit for the policyholder. As an investment vehicle, an IUL has the potential to earn more for your clients.

With an IUL in place, your clients can use the cash value component to help save for their child and even allow them to draw from the value of the policy.

Cash value

The cash value component of an IUL is a great way to build tax-free wealth for your clients. With the cash value, their policy will grow for when your clients (and their children) need it most. Once the cash value has increased enough, they can borrow from it without penalty. However, it is important to point out that any loans now paid back to the policy will affect the final amount of the death benefit.

If the cash value grows enough, your clients can even use the amount to pay their premiums for them.


A benefit to investing in IULs is that they grow tax-free. Similar to an annuity, the funds that support your client’s cash value will not be taxed. It is important to let your clients know that the exception to that will be if money is withdrawn before the cash value has matured.

Earn returns

Beyond that, indexed universal life has the potential to reap higher returns than a traditional life insurance policy. Unlike a traditional universal life policy, an IUL grows your cash value component through indexed stocks. With that type of investment strategy, your client’s coverage has the potential to grow beyond a cash value that’s supported by premiums alone.

What’s more, unlike traditional retirement saving plans, IULs do not have contribution limits .

Protect their future with Symmetry

When it comes to life’s big moments, having a child is huge for new parents. As an insurance agent, you can help your clients find an IUL that will protect their children’s future while setting up a passive income that creates the groundwork for retirement.

Like most insurance policies, purchasing an IUL is best done when the policyholder is young. An indexed universal life policy is a great option for your clients who are also new parents.

Symmetry Financial Group agents have access to high-quality life insurance, disability income insurance, critical illness insurance, and annuity products from more than 30 well-known insurance companies. This gives you the flexibility and reach you need to tailor plans to meet clients' individual coverage needs.

To learn more about how to begin a fulfilling career as a life insurance agent, contact us today .


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