COLLEGE PLANNING
Life insurance can be much more than a safety net—it can be a strategic way to plan for your child’s college education in two main ways:
Permanent policy: You build cash value over time that can be used for tuition, books, or room and board—giving your child a financial boost even while you’re living.
Term life policy: can provide a death benefit specifically timed to cover college costs if something happens while the policy is active.
This ensures your family can use the payout to fund your child’s education without touching savings or other investments.
COLLEGE PLANNING
Life insurance can be much more than a safety net—it can be a strategic way to plan for your child’s college education in two main ways:
Permanent policy: You build cash value over time that can be used for tuition, books, or room and board—giving your child a financial boost even while you’re living.
Term life policy: can provide a death benefit specifically timed to cover college costs if something happens while the policy is active.
This ensures your family can use the payout to fund your child’s education without touching savings or other investments.
Smart Planning For Your Child’s Education
Every student’s journey is different—whether it’s a four-year degree, advanced studies, or a vocational trade—but the rising cost of education is a constant. Without a plan, student loans can create long-term financial stress.
That's were we come in - to help you create a smart college funding strategy. From tax-advantaged savings plans to scholarships and alternative options, we work with you to ensure your children or grandchildren have the resources they need to succeed. Start planning today for a brighter tomorrow!
Smart Planning For Your Child's Education
Every student’s journey is different—whether it’s a four-year degree, advanced studies, or a vocational trade—but the rising cost of education is a constant. Without a plan, student loans can create long-term financial stress.
That's were we come in - to help you create a smart college funding strategy. From tax-advantaged savings plans to scholarships and alternative options, we work with you to ensure your children or grandchildren have the resources they need to succeed. Start planning today for a brighter tomorrow!
Protection From a Lifetime of Student Debt
Student loans have become a generational burden, with many graduates starting their adult lives already tens of thousands of dollars in the red. This debt doesn’t just delay financial freedom—it can postpone buying a home, starting a family, or pursuing career opportunities that don’t come with a big paycheck. Imagine your child working hard for a degree, only to spend the next 20 years paying for it.
By planning ahead now, A well-structured policy can grow cash value over time, providing a flexible, tax-advantaged way to fund their education while still protecting your family. The earlier you start, the more powerful the growth potential and the lower the cost. You’re not just funding tuition—you’re giving them the freedom to choose their path in life without debt dictating their decisions.
Protect Your Child From a Lifetime of Student Debt
Student loans have become a generational burden, with many graduates starting their adult lives already tens of thousands of dollars in the red. This debt doesn’t just delay financial freedom—it can postpone buying a home, starting a family, or pursuing career opportunities that don’t come with a big paycheck. Imagine your child working hard for a degree, only to spend the next 20 years paying for it.
By planning ahead now, A well-structured policy can grow cash value over time, providing a flexible, tax-advantaged way to fund their education while still protecting your family. The earlier you start, the more powerful the growth potential and the lower the cost. You’re not just funding tuition—you’re giving them the freedom to choose their path in life without debt dictating their decisions.
Rising College Costs Require Early Planning
College expenses are climbing steadily. Today’s private, nonprofit four-year colleges cost around $58,600 per year, totaling over $234,000 for a full four-year degree Education. If tuition continues rising at about 4% annually, the total cost for a private school degree could surpass $500,000 in 18 years.
Starting a life insurance policy while your children or grandchildren are young gives you a head start. You'll lock in lower premiums, allow more time for cash value growth, and give your funds time to compound—creating a powerful foundation for paying future education costs. Let’s work together now to build a strategy that protects both your family’s present and your child’s future success.
Rising College Costs Require Early Planning
College expenses are climbing steadily. Today’s private, nonprofit four-year colleges cost around $58,600 per year, totaling over $234,000 for a full four-year degree Education. If tuition continues rising at about 4% annually, the total cost for a private school degree could surpass $500,000 in 18 years.
Starting a life insurance policy while your children or grandchildren are young gives you a head start. You'll lock in lower premiums, allow more time for cash value growth, and give your funds time to compound—creating a powerful foundation for paying future education costs. Let’s work together now to build a strategy that protects both your family’s present and your child’s future success.
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Ready To Get Started?
FAQ
How can life insurance help pay for college?
Permanent life insurance (e.g., Whole Life or Indexed Universal Life) builds cash value you can access later through withdrawals (up to your basis) or policy loans. Those funds can help pay tuition, room and board, and other expenses. If a parent dies during the college years, the death benefit can replace income so education plans stay on track. Term life can’t fund college while you’re living, but it’s a low-cost way to protect the college plan if something happens to you.
How do withdrawals and policy loans work?
Withdrawals: You can typically take out your basis (what you paid in premiums) first, generally tax-free. Amounts above basis may be taxable.
Policy Loans: Borrow against your cash value; no credit check and typically no set repayment schedule. Interest accrues, and any outstanding loan reduces the policy’s cash value and death benefit. If the policy lapses with a loan outstanding, you could owe taxes on the gain. Good policy management is essential.
What are the tax considerations?
Cash value growth is tax-deferred. Withdrawals up to basis are generally tax-free; loans are typically tax-free if the policy stays in force. If you overfund and create a Modified Endowment Contract (MEC), loans and withdrawals can become taxable and may incur penalties if taken before age 59½. Always review with a tax professional; we can coordinate with yours.
How does life insurance impact financial aid (FAFSA/CSS Profile)
Under current FAFSA rules, the cash value of life insurance is not reported as an asset. However, some colleges using the CSS Profile may consider cash value differently in their institutional methodology. Also, any withdrawals that show up as taxable income can affect aid eligibility in a later year. Because policies and school formulas vary, plan with both financial aid timing and policy distributions in mind.
Life Insurance vs. 529 Plans—how do they compare?
529 Plans: Tax-free growth and withdrawals for qualified education expenses; may impact financial aid as a parent asset; limited investment menus; non-qualified withdrawals are taxed/penalized on earnings.
Life Insurance: Flexible use of funds (not limited to “qualified” expenses), not typically counted on FAFSA as an asset; provides a death benefit; costs and policy performance matter; requires careful management to avoid MEC or lapse.
Many families combine the two: 529 for tax-favored college dollars, permanent life for flexibility, protection, and back-up funding.
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