As a life insurance professional, you know that the right product can make all the difference in meeting your clients’ needs. One of the most valuable and often overlooked opportunities is selling Indexed Universal Life (IUL) insurance for children. This unique life insurance product offers an array of benefits that can be used to both protect a child’s future and serve as an ideal upsell to parents who already have life insurance needs.

In this article, we’ll explore the ins and outs of selling IULs for children, discuss why it’s a great sales opportunity for life insurance agents, and explain how you can effectively cross-sell or upsell to parents with children, securing long-term relationships and boosting your commissions.

What is Indexed Universal Life (IUL) Insurance?

Before we dive into how to sell IULs for children, it’s important to understand what makes Indexed Universal Life (IUL) insurance such a powerful financial product. IULs are a type of permanent life insurance that combines:

Life insurance coverage: Just like traditional life insurance, IUL provides a death benefit to the policyholder’s beneficiaries.

Cash value accumulation: IULs offer a unique feature where the cash value of the policy grows based on a stock market index, providing the potential for higher returns compared to traditional whole life insurance policies.

Flexibility: With IULs, policyholders can adjust their premiums and death benefits over time, making them adaptable to changing financial situations.

Why Sell IULs for Children?

Selling IUL insurance for children offers several unique benefits, both for the child and the parents. Here’s why IULs for children are an excellent product to offer:

1. Affordable Premiums for Parents

One of the key selling points of selling IULs for children is that the premiums are relatively low compared to insuring an adult. Parents are usually able to secure a life insurance policy for their child with a smaller premium, which makes it an easier sale. Since the child is young, the risk is low, which means the policy is often far less expensive than insuring an adult.

2. Guaranteed Future Insurability

With an IUL, children are guaranteed future insurability. This means that if the child grows up and later develops a health issue, they won’t lose their ability to purchase additional life insurance. This feature is especially important to parents concerned about securing long-term financial protection for their child in case of unexpected health problems down the road.

3. Building Wealth Early

IULs for children have the potential to accumulate cash value over time, thanks to the stock market index linkage. This cash value can grow tax-deferred, meaning it won’t be taxed until it’s withdrawn. Parents can use this built-up cash value for the child’s future needs, like paying for college, a first home, or even supplementing retirement savings later in life.

4. A Financial Head Start

Opening an IUL for a child gives them a financial head start by creating an asset that can grow over time. Many parents are looking for ways to help set their children up for success, and offering this type of product allows you to meet that need while positioning yourself as a trusted advisor for the long haul.

How to Sell IULs for Children to Parents

Now that we understand the advantages of IULs for children, let’s dive into how you can effectively sell this product to parents and use it as an upsell or cross-sell to your existing clientele. Here are some strategies that will help you position IULs for children as an attractive option:

1. Start with the Parent’s Needs

Before you can successfully sell an IUL for a child, it’s important to assess the parent’s overall financial situation and life insurance needs. Are they interested in life insurance for themselves? If so, make sure you present the IUL as a flexible option that offers both death benefit protection and potential cash value growth.

Once you’ve addressed their needs for their own coverage, pivot the conversation towards the benefits of securing life insurance for their children. By focusing on how a small, affordable premium today could provide major financial advantages in the future, you can help parents see the value of a child’s policy as part of their overall financial strategy.

2. Emphasize the Future Benefit of Cash Value

Many parents may not immediately recognize the long-term value of having an IUL for their child. To overcome this, highlight the cash value accumulation feature. Use simple scenarios to illustrate how the policy’s cash value can grow over time, perhaps even showing examples of how a $50-$100 monthly premium could accumulate into tens of thousands of dollars by the time the child reaches adulthood.

3. Position It as Part of a Broader Financial Strategy

Rather than just selling the IUL as a standalone product, frame it as part of a comprehensive financial strategy. You can explain that the IUL helps with wealth-building, but also doubles as a safety net in case of an unexpected tragedy. This will resonate with parents who want to ensure that their child’s future is protected financially.

Consider incorporating IULs for children into other services you offer, such as retirement planning or college savings. This will reinforce the idea that this product is an investment in the child’s future and provide a clear connection to other financial products they may need.

4. Use Real-Life Examples

Nothing helps make a concept more tangible than a real-life example. Share stories of how IULs have benefited other clients or used case studies of families who have successfully used the policy’s cash value for big life events like buying a home or paying off debt. This can build credibility and trust with your prospects.

5. Highlight the “Set It and Forget It” Advantage

For busy parents, the idea of setting up something that requires little to no maintenance can be very appealing. Explain to parents that an IUL for their child is a long-term, hands-off investment that only requires periodic review. This will appeal to parents who want to secure their child’s future without having to think about it on a regular basis.

6. Cross-Sell with Other Insurance Products

An IUL for children offers an ideal opportunity to cross-sell life insurance products for the parents as well. Once you’ve convinced them of the value of the IUL, introduce other products such as term life insurance or whole life insurance, depending on their needs. By presenting the IUL as part of a holistic life insurance strategy, you can increase your average policy size and provide a broader range of solutions.

Related: Shop The Industries #1-Rated Exclusive IUL Leads >>

Conclusion: The Power of IULs for Children

Selling Indexed Universal Life Insurance (IUL) for children is not just about offering life insurance coverage—it’s about helping parents build a financial legacy for their children while providing a solution that grows over time. By positioning the IUL as an affordable, flexible, and long-term investment for a child’s future, you can stand out as a trusted advisor who understands both the immediate and long-term needs of your clients.

So, the next time you’re meeting with parents who are considering life insurance for themselves, remember that an IUL for their children may be the perfect upsell or cross-sell. It offers them peace of mind, financial growth, and a guaranteed future that will benefit both them and their child for years to come.

By educating your prospects and focusing on the benefits of IULs for children, you’ll not only secure more sales but also build lasting relationships with your clients, turning them into loyal customers for life.