The Legacy Promise Plan is a modern indexed universal life (IUL) strategy designed to give your child tax-advantaged access to cash in adulthood—for college, a first home, or their own children—while protecting them with lifelong coverage.
In as little as 10–20 years, your contributions can grow into a flexible, tax-advantaged asset your child controls for life.
This is a concept illustration, not a specific product or guarantee. Actual results depend on funding level, policy performance, and carrier.
The Legacy Promise Plan reimagines the original “Million Dollar Baby” concept as a disciplined, tax-advantaged savings and protection strategy. By funding an IUL policy while your child is young, you give their future self a powerful combination of lifelong coverage and access to cash value they can use throughout adulthood.
Unlike a traditional 529 plan, which is limited to education expenses, the Legacy Promise Plan can support multiple life milestones: education, first home, starting a business, supplementing retirement, or even funding a plan for your child’s own children someday.
Every plan is customized to your budget and goals, but the framework stays the same: protect today, grow for tomorrow, and create options for your child’s entire lifetime.
Cash value inside the policy grows tax-deferred and can be accessed in a tax-advantaged way if structured properly, offering your child flexible funds without triggering typical investment taxes.
Because the policy is set up in childhood, your son or daughter can maintain coverage throughout life, regardless of future changes in health or insurability—a long-term safety net you started for them.
Funds are not restricted to tuition. Your child can use policy loans or withdrawals for what matters most at that stage of life—education, home purchase, business launch, or supplementing retirement income later on.
Because this is an insurance-based strategy, it may offer protections not available in standard investment accounts and is not directly invested in the stock market, helping reduce volatility exposure.
You control the plan while your child is young. Later, ownership can be transferred at a time you choose, along with education about how to use it wisely as a long-term asset.
Whether you’re setting aside a modest monthly amount or front-loading contributions, we design the plan around what’s realistic for your family today, with scenarios for future potential values.
The Legacy Promise Plan is not a one-time transaction. It’s a structured, multi-decade strategy designed to gradually shift control and benefit from the parents or grandparents to the child.
Important: The illustrations we review together are hypothetical and not promises of performance. Carrier rules, index caps, fees, and policy design all affect actual outcomes. We walk you through these details before you ever fund a plan.
Many families use a Legacy Promise Plan alongside a 529. The key difference is how restricted the funds are and what happens if your child takes a different path than you expected.
Both tools have a place. Our role is to help you decide what mix makes sense for your family and risk profile.
Every family’s situation is different. These answers are for educational purposes and not individualized advice. We’ll walk through your specific numbers before you make any decisions.
No. The “Million Dollar Baby” nickname described a strategy, not a guarantee. The Legacy Promise Plan is based on indexed universal life insurance, which includes policy charges and caps on interest credited. Actual performance depends on funding level, policy design, index performance, and how the policy is managed over time. We always show conservative and alternative scenarios so you understand the range of outcomes.
Unlike a 529 plan, the Legacy Promise Plan is not limited to tuition. As long as the policy is properly funded and in force, cash value can potentially be used for a first home, starting a business, supplementing income, or other goals. There are still important rules around loans and withdrawals, which we explain in detail during your consultation.
Typically, a parent or grandparent applies for and owns the policy while the child is a minor. Later, ownership can be transferred to the child or another family member as part of your broader estate and tax planning. We coordinate with your attorney and tax professional when necessary to make sure the handoff aligns with your wishes.
IUL policies are flexible. Depending on how the policy is structured and how it has performed, you may be able to reduce or pause contributions. However, underfunding can put the policy at risk of lapse. During our design process, we stress-test for life changes and aim to set contributions at a level that feels sustainable.
Yes. If a policy is not properly funded or is over-loaned, it can lapse and trigger unexpected taxes. Costs of insurance and policy expenses can also impact long-term performance. That’s why we don’t treat the Legacy Promise Plan as a do-it-yourself product. Ongoing reviews, realistic expectations, and coordination with your other planning are essential.
In a 30–45 minute conversation, we’ll review your goals, budget, and timeline, then walk through real illustrations showing how a Legacy Promise Plan could play out for your family.
We strongly recommend sharing our summary with your CPA and estate-planning attorney before implementing any strategy.
By submitting this form, you understand that this discussion is for educational purposes only and does not constitute tax, legal, or investment advice. Insurance products are subject to underwriting and approval.