How to Plan for College Using Life Insurance

Married/Partnership or not, anyone responsible for children should consider purchasing life insurance. Here’s why…

Life insurance provides an instant financial safety net upon the death of a parent.  The younger the parent, typically the lower their cost of insurance.

In addition to the protection and peace of mind life insurance provides, permanent life insurance can also be used to accumulate money for college. If started while the child is young, a sufficiently funded permanent life insurance policy has a long time horizon to accumulate cash for college expenses, which can be accessed using policy loans and withdrawals.* What’s more, life insurance cash value does not count against the parents for purposes of federal financial aid.

What does this mean for you?

Educate your clients that need life insurance on how it might also be used to fund some costs of college.

Below are two tools that you can use with your clients to explain and illustrate the power of purchasing early.

Make the Grade:  Life Insurance as a College Funding Strategy

College Funding Needs Calculator

TC110045(0919)1