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College Funding

It's important to our clients to find solutions that can help secure education for their children (or grandchildren) while providing flexibility if other needs arise. Adding permanent life insurance can help improve your overall college saving plans.

This concept highlights how death benefit protection coupled with cash value accumulation can be utilized to ensure college savings are achieved, while providing flexibility to access cash values for both educational and non-educational expenses if needed.

Target Market

This planning solution is ideal for individuals who:

  • Have children or grandchildren of any age looking to attend college
  • Want a solution that can help ensure college savings needs are met
  • Would like additional flexibility if needs change in the future
  • Want to compliment traditional college savings vehicles

Using Permanent Life Insurance as Part of this Planning Strategy Provides the following:

  • Valuable income tax-free death benefit protection to help ensure college savings are still achieved if parent/grandparent die prematurely
  • Tax deferred growth of policy cash value to help pay for college*
  • Protection from market fluctuations
  • Cash value can be accessed income tax-free for educational expenses*
  • Flexibility to also access cash value without IRS penalty for non-educational expenses*

*Life insurance permanent policies contain exclusions, limitations, reductions of benefits and terms for keeping them in force.  Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values.  Policy must not be a modified endowment contract (MEC) and withdrawals must not exceed cost basis. Partial withdrawals during the first 15 policy years are subject to additional rules and may be taxable. Policy must not be surrendered, lapsed or otherwise terminated during the insured's lifetime.