College Funding with Permanent Life Insurance

The average US household has enough life insurance to replace just about 3.5 years of their income. On the other hand, college costs have an inflation rate of 5.6% per year. This has put the financials of many families in a vulnerable position. A proper college funding strategy can help many of these families meet their financial needs and protect what matters to them most.

When you have a college funding strategy with permanent life insurance in place, in case of a premature death, the death benefits of the life insurance can be used in completing the college savings goals and paying for college.

Permanent life insurance may also be able to help build tax-deferred cash value, which can be considered as potentially tax-free income by the way of loans to pay for college.

Another advantage of this policy is that the owner will have control over the potential accumulated cash value. If the plans change, this cash value may be used for other goals, without any tax consequences.

 

Source: Health Care Los Angeles

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