Life Insurance to Save for College Tuition
Sep 18, 2019
The cost of a good college education has grown to staggering heights these days. The College Board sites that the average tuition and fees at public colleges are $9,970 for state residents and $25,620 for out-of-state students. Unless your clients started saving years ago, odds are that they need a savings plan right now to afford the costs of sending children to college. As a financial advisor, you can step in with a unique, but effective solution: permanent life insurance.
Using life insurance as an alternative way to save for tuition has great benefits. Unlike a 529 plan, life insurance does not get calculated as a parental asset when applying for financial aid. So, the policy can supplement tuition payments and work hand-in-hand with other financial aid avenues. Another benefit life insurance has over 529 plans is the fact that permanent life insurance policies are tax-free. If your client’s child decides to not go to college, they can utilize those savings any way they see fit without the worry of looming income tax rates. That is a level of flexibility that 529 plans simply do not provide.
We offer a variety of resources to help illustrate the benefits of permanent life insurance including our 50 Ways to Need Your Coverage presentation. To access this presentation and discuss further, please give one of our Brokers Alliance Agent Relationship Managers a call at 480.296.0169.