College Funding
College Funding With Life Insurance
College Funding and The Benefits of Life Insurance
Comparing life insurance and funding a college education may not seem a likely pair at first, but they are both important tools for your family to build a better financial future.
In fact, they can really work hand in hand – as the cost of higher education continues to rise, a life insurance policy can play an important role in a college savings plan.
Life Insurance Don’t Overlook It for College Funding
Life insurance is often overlooked as a college savings tool, but it can be a valuable piece of the puzzle. Permanent life insurance policies have cash value that can be accessed through policy loans or withdrawals, and the death benefit can be used to cover college costs if the insured parent dies.
There are a few things to keep in mind when using life insurance for college savings. First, make sure the policy is properly funded – the cash value will not grow if the premiums are not paid. Second, be aware of the tax implications – withdrawals from the cash value are generally taxed as ordinary income.
Life Insurance is a helpful part of a college funding plan.