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College saving plan turns into tax-free retirement plan

Many American parents invest money in State 529 College Savings Plans for their children because they are unaware of an alternative College Saving Plan that will give them a risk free better return, as well as life insurance, emergency medical insurance, no restriction on withdrawal and tax-free retirement all while being 100 percent safe from market declines and rescission, compared to the State 529 Plan. 

Many people believe that life insurance is only for death benefits when they hear about it. There is not much knowledge about Indexed Universal Life (IUL) insurance policies, which include a cash accumulation component, similar to Indexed Annuities, but are entirely tax-free. Literally, you can call it an IUL investment plan. It is getting very popular and many people believe that it will be the next 401(k) retirement and college saving plan.

In “Forbes”, Dr. Edward Burns Jr wrote an article: “Why IUL Investment Might Be New 401(k)?” 

Risk-Free – Zero loss on investment even if the market is down or crashed. Risky – Lose investment when the market is down or crashed.
There are no restrictions on how the money can be spent. Student/s can be admitted to any university in the US or abroad. Restriction – money must be used for college expenses
Not considered as an asset. Students are eligible for student loans, financial aid, and scholarships. Considered as an asset. Do not qualify for a student loan, financial aid, and scholarships.
There is no penalty and 59½ age restriction for early withdrawal. There is a penalty for early withdrawal, as well as a restriction on age.
No penalty if the money is used for other than college expenses. After graduation, the savings balance is zero. If not zero, you will pay 10% penalty to draw the remaining balance.
After graduation – money left in the savings & keep paying the same premium turns into a Tax-Free Retirement Plan. No Retirement Plan.
It comes with life insurance, chronic, terminal, and critical illness plan. Does not come with life insurance, chronic, terminal or critical illness plan.

College Savings Plan turns into Tax-Free Retirement

  • Tax-Free College Saving
  • Never lose your investment even if the stock market crashes.
  • An Excellent Rate of Return
  • Qualify for Student Loans, Grants, & Scholarships
  • No penalty for taking money at any age for anything, such as a car, home, etc
  • Retirement Plan
  • Family Protection
  • Tax-Free Death Benefit
  • Chronic Illness
  • Critical Illness
  • Terminal Illness
  • No need to buy life insurance for life
  • Premium never changes

College Savings Plan


Girl at Age 1 Boy at Age 1
Premium per month $300 $300
College Saving About $179,117 About $178,525
Tax-Free Retirement at age 65 About $384,620 About $362,456
Total Paid into the plan by age 65 About $226,800 About $226,800
Total Received from age 65 to 95 About $11,717,721 About $9,602,392
Tax-Free Benefit if die at age 95 About $1,051,165 About $960,169
Chromic, Critical and Terminal Illness Yes Yes
Loan for business or house Yes Yes

For State 529 College Saving Plan – After graduation, the savings balance is zero. If not zero, you will pay 10% penalty to draw the remaining balance.

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