Creating a Flexible Financial Tool for Family Protection
With their first child on the way, Sophia and Mark weren’t just thinking about protection — they wanted flexibility. How could they safeguard their growing family today, while also building a pool of money that could be tapped for college, a second home, or even retirement income down the road? The strategy they chose gave them both security and options, creating a financial tool designed to grow with them.
Andrew Perez
September 17, 2025
Client profile
Ages
35 & 34
Occupation
Attorney (wife) & Small Business Owner (husband)
Annual Household Income
$190,000
Marital Status
Married, first child on the way
Challenge
Sophia and Mark wanted to protect their growing family while simultaneously building cash value that could be tapped for future expenses like a second home or funding their child’s college tuition. They wanted a product that could serve multiple purposes — protection, savings, and potential future income.
Solution
- Product Type: Joint IUL (two separate policies)
- Premium Design: $12,000 each per year until age 65
- Funding Strategy: Consistent out-of-pocket contributions, using policy overfunding to build cash value efficiently
- Additional Features: Chronic illness rider and waiver of premium rider for added security
Why It Worked
The IULs provided permanent death benefit protection while growing a pool of cash value that could be accessed tax-free if needed. Over time, their contributions function like a private family bank, allowing them to borrow against the policies for strategic needs without triggering a taxable event.
Outcome
By age 55, Sophia and Mark are projected to have over $350,000 in combined policy cash value. They plan to use policy loans for their child’s college expenses and later to create a tax-free income stream to supplement retirement. They also feel reassured knowing that the death benefit would protect their family if something happened prematurely.