College Costs
In-state college tuition averages approx $10,000 semester
- College Board shares that the average published in-state tuition and fees went up almost 3% before adjusted for inflation from $9,980 in 2017-18 to $10,230 in 2018-19
What will you pay for?
- Will you/can you pay for your child's college?
- Will you want or require your children to help pay for their college costs?
- How much do you think you can save on your own?
- How much can your children contribute through jobs and savings?
- How many kids and what is the time frame leading up to and between each child heading to college?
- What type of school will they attend and where?
- How thoroughly have you investigated the costs of college including tuition, fees, room and board, student organizations etc?
- Are you able and willing to adjust current spending to commit to a monthly savings investment for college?
- What if you become disabled or pass away? Is a plan in place for these scenarios?
- How important is liquidity or access to the funds?
Funding college expenses can take multiple vehicles and life insurance may be an appropriate option for your situation.
Life insurance has tax beneficial traits, and those traits make life insurance a good option for many to help them assist in funding college savings.
- Life insurance policy amounts aren't usually included in financial aid eligibility determinations. Life insurance can also supplement additional college savings funding vehicles like college savings accounts and state tuition savings plans
- You can use the cash value of some life insurance policies to potentially provide tax-deferred access to funds for college and other items with a policy loan. Keep in mind that any withdrawals may be taxable and reduce the death benefit of the policy.
- The policy death benefit can help fund college expenses in the event a parent dies
Life Insurance May Help in Saving for College
