If I have a IUL ''indexed universal life'' policy, can I transfer it to my kid?

In most cases, you cannot directly transfer an Indexed Universal Life (IUL) insurance policy to your child. An IUL policy is a type of permanent life insurance that combines a death benefit with a cash value component that is tied to the performance of a stock market index. These policies are typically owned by the insured individual, and the ownership and beneficiary designations are determined by the policyholder.

However, there are some ways you can involve your child in the policy or its benefits:

1. **Designating Your Child as Beneficiary:** You can designate your child as the beneficiary of the policy. This means that if you pass away, the death benefit would be paid out to your child. This is a common approach to pass on the benefits of life insurance to the next generation.

2. **Gifts:** If you wish to financially assist your child, you could consider using the cash value component of your IUL policy to take out a loan or partial withdrawal and then gift or lend the funds to your child. However, this would reduce the policy's cash value and potentially impact its performance and benefits.

3. **Policy Ownership Change:** Depending on the terms of your specific policy and the insurance company's policies, you might be able to transfer ownership of the policy to your child. This would involve changing the ownership, which could have implications for the policy's taxation and future management.

4. **Purchase a New Policy:** If you want to provide life insurance for your child, you might consider purchasing a separate life insurance policy for them. Depending on their age and health, this could be a more suitable option.

It's important to note that transferring ownership or making changes to an insurance policy can have tax implications and should be done carefully and in consultation with your insurance advisor and tax professional. Additionally, insurance policies have various rules and limitations, and the specific terms of your IUL policy and your insurance company's policies will determine what options are available to you.

Before making any decisions, it's recommended that you reach out to your insurance company or agent to discuss your intentions and understand the options available to you based on your policy's terms and conditions.