Whole Life Insurance Can Cover College Costs! Find Out How!

Children are our pride and our hope for a better future. We strive so hard to make the world a better place for the generations to come. Through our beloved sons and daughters, our name and blood continues. But we must also make sure that we leave a legacy that can be later used to continue our work.

college-costProgress can be obtained only with the help of educated people. Offering the best possible education has become a top priority for many American citizens. That comes with a price and we all know that college taxes are expensive. Whole life insurance can cover college costs. Find out how!

College tuition can be sizeable; the average cost of a single year at a public university is $20.000, while a single year at a private university has the average cost of $28.000. The most common savings plan for college funds is the 529 College Savings Plan, but it has numerous flaws, limitations and exceptions.

Also, the features and benefits differ depending on which state you live.  A solid alternative is using whole life insurance as a college savings plan.  There are several benefits and key features that make whole life insurance a better choice:

1)      Flexibility. You can choose to save money for everyone and for everything. 529 plan only takes into consideration “qualified education expenses”- fees, tuition, books, room and board at an accredited US university. But if your child quits college, or goes abroad, or receives a full scholarship, you can only name another beneficiary to the savings.  Whole life removes these worries. You will have total control over your money and your child will be able to use it as you wish.

2)      Tax advantages. Whole life cash earnings also accumulate on a tax-free basis. If you know how to manage this insurance properly, you can withdraw the policy on a 100% tax-deferred basis.

3)      Contribution limits– Just like the 529 plan; whole life also has contribution limits for the first years of the policy.  The limits will be removed after the first seven years of the policy. Also, the policy exceeds the $350,000 lifetime limit of the 529 savings plan.

4)      Income limits– there are no income limits.

5)      Total control of the policy. The investor, and not the beneficiary (your child), has total control over the policy and decides the timing and the amount of the cash distribution.

There are many other things to know. Visit our website for more details and free life insurance quotes. Visit us!