Saving for college is a big concern for many young families. There are many options available. It can really confusing to choose.
An option that should be in the mix but generally gets overlooked-Permanent life Insurance.
Of course, the primary purpose of life insurance is to pay a death benefit when someone dies, but it can also be a very flexible alternative to traditional college funding programs. This can really be appealing to certain clients because it includes features not found in any other program.
Think about it--what other college savings program is self-completing in the event of a premature death? None.
However, the life insurance death benefit immediately creates a pile of money at death that can be used to fund the college savings goal and cover the college costs.
It also provides tax-deferred growth, just like most of the other programs do. Income taken from the plan can be income tax-free through the use of loans and withdrawals and can supplement your other college savings sources. You also have the added benefit of not having to include the accumulating cash values when filling out the required Federal Application for Federal Student Aid (FAFSA) form each year when applying for student aid.
That's Big !!
And finally, the policy can be repositioned after paying for college to then help supplement retirement planning. And through all this it's still protecting the family with the death benefit. That's pretty comprehensive. None of the other programs have all these benefits.
No comments:
Post a Comment