IULs or investment accounts for my kids?

[LostDollar]

Caveat, not an agent.

this is not exactly what op asked, but could op go to an insurance company and put $30K in an annuity that allows annual withdrawals for 10 years and then purchase 3 policies, one for each child, each policy paid for by a share of the annuity withdrawal each year?

 

[Allen Trent]

Caveat, not an agent.

this is not exactly what op asked, but could op go to an insurance company and put $30K in an annuity that allows annual withdrawals for 10 years and then purchase 3 policies, one for each child, each policy paid for by a share of the annuity withdrawal each year?

Not likely, lots of negative tax reasons. annuity will issue a 1099 each year & OP is very likely under 59 1/2 so any taxable gains on the annual tax return will have 10% IRS penalty.

Roth, IUL or 529 savings would have better tax advantages for tax deferral, tax free access & in the 529 even a tax deduction on state tax return for the deposits in many states

 

[Tahoe Ray]

If the maximum amount of contributions is $10,000, then do not get any permanent life insurance policy. However, if you are willing to deposit $5,000 Year 1 and 2 and borrow using an indexed loan years 3-5, then; that is the better route to take. Just my 2 cents of course.
How long have you been selling life insurance...just curious

You mean to tell me that you don't recommend people taking indexed CV loans to pay premiums after two years of funding? /s

This was easy in the 80s too from what I understand...

 

[scagnt83]

You mean to tell me that you don't recommend people taking indexed CV loans to pay premiums after two years of funding? /s

This was easy in the 80s too from what I understand...

Did someone say zero premium life insurance??? LMAO

 

[Lloyds of Lubbock]

If it is so good, why stop paying the premium?

 

[ATM]

You are comparing apples and oranges. An IUL is not an investment account and will not perform like one over long periods of time. I would equate it more to an inflation hedged bond where you could expect to make 4-6% over time.

An investment account may make much more than that, but also entails more risk.