We know keeping your family protected during retirement and beyond is important to you. Getting life insurance for college savings for a child or grandchild could be the greatest legacy you leave. It could also help you pay off your own student loans so you can have more money later for retirement. Permanent life insurance could be your answer to financial protection.
Using Life Insurance For College Funding
College is expensive, and tuition continues to increase over the years. The College Board reports that “the average published tuition and fee price of a full-time year at a public four-year institution is 40 percent higher, after adjusting for inflation, in 2015-16 than it was in 2005-06.”1 It seems as though we’ll be stuck in student loan debt forever. Fear not, getting whole life insurance for college savings can help cover the cost of education.
Choosing the Right Life Insurance
With term life insurance, your beneficiaries could use the death benefits toward paying off college loans or tuition if they are currently in school. You must die within the term (or renewal term) of the policy in order to the death benefit to pay out.
Whole life insurance, also known as permanent life insurance, provides protection for your entire life, as long as you continue to pay your premiums. Aside from beneficiaries receiving a death benefit after you die, there is also a living benefit. Over time, the insurance company contributes cash value that is accrued and tax-deferred. A portion of your premium also goes toward the cash value. You can withdraw money from the cash value fund at any time and pay off loans as long as it isn’t more than what you have accumulated.
If you know you won’t have student loan debt in the far future, consider life insurance for a child or grandchild’s education. As a parent to a toddler, it’s never too early to sign up for life insurance for college savings. In fact, the sooner you sign up and start saving, the less you’ll need to put into your monthly savings and the more tax-deferred cash value accumulation you’ll gain.
Life insurance for a family member’s education could be just the resource they need to pursue higher education without the financial stress. The cash value in a whole life insurance policy could fund more than just a child’s schooling. Other opportunities for funding include2:
- Business start-up
- Down payment on a home
- Supplemental retirement income
Life insurance for college savings could give you peace of mind knowing that your family won’t have to worry about student loan debt. Whether it’s through a death benefit or withdrawing from the cash value fund, you’re helping your loved ones pursue their goals with little financial stress.
Let HealthMarkets Help
Avoid spending hours of researching different policies by speaking with a HealthMarkets licensed agent. You can discuss your needs and budget with a knowledgeable agent so that they can find the best life insurance policy for you. And best of all, it’s at no cost to you. Find a local agent today.