College Planning
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Can you guarantee an education for your child?
Your children are college material. What about your bank account? It’s expensive to send children to college. Education costs are on the rise, increasing by an average of 10 percent each year, growing faster than any other type of expense – including healthcare. At some schools, yearly tuition, board and fees now exceed $30,000.
Of course, paying for college education isn’t impossible. Many parents can handle the expense – as long as they continue to work and earn money. But what happens when a parent becomes disabled or dies?
If you died tomorrow, could your children attend college? If your answer is no, you may want to consider a plan that could guarantee an education for your children in the event of your death.
Life Insurance: a smart decision
Life insurance may be your best option when planning for college funding. Here’s why:
- Life insurance can create an ‘instant estate’ for your children as named beneficiaries. In the event of your death, your children’s financial needs will be met – no matter what happens.
- The money is available immediately. Getting money out of other long-term investments, even if it is available, can be time-consuming and costly. In contrast, life insurance benefits are paid at the insured’s death with no waiting period, no penalties for early withdrawal and no red tape.
- In most instances, death benefits pass income tax-free to your beneficiaries.
- The cash value portion of a permanent life insurance policy can be accessed to provide a form of living benefit. Meanwhile, you’re still protected by the death benefit portion of the policy.
For more information about the tax status and benefits of life insurance, please consult your tax advisor.
Why not get a quote for the protection you need?