College Funding Using Cash Value Life Insurance
With the rising cost of college, a great deal of parents are searching for ways to help pay for their kid’s tuition. Over the past decade the published in-state tuition and fees for public universities grew at an average rate of 3.5% per year above the rate of inflation. At the same time, the majority of families lack the correct amount of life insurance protection if the primary breadwinner dies unexpectedly. The right cash value life insurance policy can secure needed death benefit protection as well as be a funding source down the road for kid’s college tuition and expense.
There are multiple ways to pay for college, such as 529 plans and GET College Plans, but these plans can be restrictive and cumbersome. A key benefit of cash value life insurance, is that it accumulates on a tax-deferred basis, and has a death benefit if a parent passes away prematurely. Some advantages of cash value life insurance policies include:
- Death Benefit – creates a pool of money to fund children’s college in the event of a parent’s premature death.
- Policy Loan and Withdrawal Options – allows the policyowner to access the cash value within the policy.
- Parental Stewardship – policyowner has control over the accumulation cash value which can be used for other things should their child gets scholarships or decides not to go to college.
- Tax-Deferred Growth – cash values within life insurance policies generally grow tax-deferred.
It is prudent to explore the options of utilizing cash value life insurance and speak with a knowledgeable independent life insurance representative. Take the time to have a thorough discussion and match up your need for life with the right amount to put away for children’s college expenses.
If you are looking for ways to save for kid’s college and would like to learn more about which cash value life insurance policy is best for you, you can reach out and speak with a life insurance expert at Pacific Insurance Group by calling the Bellevue Washington office directly at 425-246-4222 or visit https://www.pacificinsurancegroup.com/