Notes

Using Permanent Life Insurance to invest in a College Education
Permanent life insurance, either universal life or very existence, written using one of the parents is excellent as either a primary or alternate funding vehicle to pay for a child's college education. There are Additional info . Life insurance is really a "self-completing" plan. In case a parent dies while the child is still young, life insurance coverage would pay an income tax-free death benefit to the beneficiary (presumably the surviving spouse) who is able to use that money for the child's college education.
2. Cash value in a life policy can not only grow tax-deferred, but could be removed tax-free (within limits) for college expenses, through policy loans.
3. After borrowing from the policy, it will still have cash value that may grow for years to come. Once the parent is in retirement, they might access that cash through withdrawals and policy loans. This is using your policy to its greatest potential.
4. Also, money in a permanent policy is not a countable asset whenever a child applies for college school funding.

Self-completion, locked-in investment gains, tax-favored access to cash throughout the owner's life, and exemption from countable assets are significant values to the client.

Furthermore, the client might want to have his children take out student loans to pay for college understanding that the interest rate is very low and that the amount of money in the life span policy will grow at an improved rate. This gives leverage and options for the parent, and the ability to give additional money to the child tax-free later on, to pay off the student loans and some.

Keep up up to now with timely financial tips and subscribe to the free newsletter. Visit http://www.youcontrol.blogspot.com Will Barnes is a financial and personal growth consultant located in Illinois.
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