March 2, 2021
6 Reasons Life Insurance Works for Protection and a College-Funding Tool
Financing educational dreams and goals can be a challenge - life insurance can help.
Your clients need death benefit protection, but they are also trying to save for different things in life – college, retirement and unexpected events. But, what if there was a solution to help with all of those goals? Permanent life insurance provides a death benefit for your client’s family, living benefit riders that can provide a benefit if they become seriously ill1 and a cash value component that can be used to help pay for educational expenses.2
Why Life Insurance Works as a College-Funding Tool:
- The death benefit can complete college saving plans if wage earner dies.
- Cash value in a life insurance policy is not defined as an asset for federal financial aid calculations.
- The cash value in a permanent life insurance policy accumulates tax-deferred.
- The cash value has no restrictions on use, and as long as the policy is sufficiently funded, the cash value can help with multiple goals. If educational plans or goals change, the cash value can pivot to the new need.
- Many types of life insurance offer cash value that is not subject to market volatility.
- Offers early access to the Death benefit through Accelerated Benefits Riders if they experience a qualifying illness.1
Looking for a marketing flier to share with your clients and prospects?
View our Life Insurance as a College Funding Strategy Brochure
1Living benefits are provided by riders, which are supplemental benefits that can be added to a life insurance policy and are not suitable unless you also have a need for life insurance. Riders are optional, may require additional premium and may not be available in all states or on all products. This is not a solicitation of any specific insurance policy.Payment of Accelerated Benefits will reduce the Cash Value and Death Benefit otherwise payable under the policy. Receipt of Accelerated Benefits may be a taxable event, may affect your eligibility for public assistance programs, and may reduce or eliminate other policy and rider benefits. Please consult your personal tax advisor to determine the tax status of any benefits paid under this rider and with social service agencies concerning how receipt of such a payment will affect you. The use of one benefit may reduce or eliminate other policy and rider benefits.
2The ability of a life insurance contract to accumulate sufficient cash value to help meet accumulation goals will be dependent upon the amount of extra premium paid into the policy, and the performance of the policy, and is not guaranteed. Policy loans and withdrawals reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy’s cash value in early years.
