How to Get to College

Many wonder how they will get to college as the cost of a college education continues to grow.  The average in-state tuition and fees for a public 4-year institution rose 3.1% (before adjusting for inflation) since the 2016-17 academic year.1 Finding a way to meet the cost of tuition, room and board, and all other associated fees can be a challenge. We believe we have an answer.

Make College A Reality with Index Universal Life

You have many options when saving for your child or grandchild’s education while staying on track with your own financial goals. You may not think of life insurance as a way to accomplish this, but an indexed universal life (IUL) insurance policy can be a very beneficial college saving strategy.

How IUL Can Help

While the primary purpose of life insurance is to provide a death benefit to your beneficiaries, it can also be used to create a self-completing plan to help fund a college education. IUL insurance has the potential to accumulate cash value on a tax-deferred basis, where those funds can be accessed to help pay for costs like college.

Some of the advantages of IUL insurance include:

  • Cash values grow tax-deferred
  • Policy owner has control of the policy’s accumulated cash value. Should plans change, you can use the funds for other purposes like buying a new home, starting a business, or funding a retirement
  • Policy loan options are available to help you access the potential cash values within your policy.

How it Works

A college funding strategy using IUL insurance typically includes these basic steps:

  1. Purchase of a permanent life insurance policy. The policy provides death benefit protection and a way to help accumulate cash value on a tax-deferred basis
  2. Should a premature death occur, the life insurance death benefit could be used to complete your college savings goal and help pay for college
  3. Alternatively, when it comes time for you to pay tuition costs, you may access the policy’s potential cash values through generally tax-free loans or withdrawals
  4. After helping to pay tuition costs, you may reposition the policy for other possible needs, like helping to supplement your retirement income.

Learn more about how index universal life insurance can help you save for college and your future. Fill out this form to request more information or schedule an appointment below:

   

   

Benefits of IUL Insurance

A college funding strategy using IUL insurance typically includes these basic steps:

  • Your policy cash value accumulates on a tax-deferred basis and, if managed properly via withdrawals and/or loans, it can be withdrawn on a 100% tax-free basis. This money can help assist with college expenses, as well as unrelated costs, with no penalties or restrictions on the uses for that cash value.
  • Your policy value can grow tax-deferred and is protected from downside market risk. So when the market is up, your policy value will grow, but when the market is down, your money is protected and you will never lose any of your hard-earned savings.
  • Another a great benefit is if your children decide not to go to college, that money can be accessed for other uses. You can continue to let the value grow tax-deferred and later withdraw money for a down payment on a house, fund a new business, or provide for retirement.

THE IMPORTANCE AND COST OF HIGHER EDUCATION

  • By 2020, 65% of all jobs in the economy will require postsecondary education and training beyond high school.
  • 35% of the job openings will require at least a bachelor’s degree2
  • A moderate college budget for an in-state public college for the 2016–2017 academic year averaged $24,610, and $49,320 for a private college.3

Book an appointment and see how a index universal life insurance can make college a reality:

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1 The College Board. Trends in College Pricing 2017

2 Recovery: Job Growth and Education Requirements Through 2020

3 Collegedata. What’s the Price Tag for a College Education?

© Copyright Insurance Insight Group. All rights reserved. All examples are hypothetical only and not intended to be a predictor of actual results.

Guarantees provided are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC.
Index Universal Life is not a stock market investment and does not directly participate in any stock or equity investments. Market Indices do not include dividends paid on the underlying stocks, and therefore do not reflect the total return of the underlying stocks; a market-indexed insurance product is not comparable to a direct investment in the equity markets. Clients who purchase IUL are not directly investing in a stock market index.
Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

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