Three Ways Life Insurance May Help Pay For College
Three Ways Life Insurance May Help Pay For College
One of the many benefits of life insurance is how versatile it is. It can be purchased in virtually any amount (depending on age and health) and proceeds aren’t processed through an estate. It can be purchased as term insurance or as permanent/whole life insurance. Most appreciate that there are no restrictions on the use of life insurance proceeds so they may be used for any purpose.
Many families purchase life insurance for the specific purpose of helping ensure a college education. Here are three ways that life insurance can help pay for higher education.
- Insuring the Life of a Parent or Breadwinner
One of the main ways life insurance can help ensure college costs are provided for is by sufficiently insuring the life of a parent or main breadwinner in a family.. The death of a parent will not only have a significant emotional impact on a child, but it potentially changes the trajectory of that child’s education. When determining how much life insurance is sufficient for young families, they should take in consideration the costs of a college education for each of their children. The proceeds don’t necessarily have to be used for that purpose but it can be comforting to know funding will be in place should a parent’s death occur.
- It Can Build Cash Value That Can Build Valueย
Younger families, in particular, can find it challenging to set aside money for the future, including a college education. This is why many families will take out a whole life or permanent life insurance policy on a child. A life insurance policy on a child provides coverage and assures the insurability of the child. When purchased in sufficient amounts, permanent life insurance can build enough value to be very helpful in paying for college. Families may find paying for life insurance easier than trying to save money separately. When it comes time for college, the value of the policy can be tapped into through a loan or cashed in for the purpose of helping to pay for college.
- It Becomes a Financial Asset
Because a permanent life insurance policy can build cash value, it becomes a financial asset. This is true whether the policy is on the student or the parent. If a young parent, for example, would take out a significant whole life insurance policy when a child is born, not only will they have additional life insurance protection through some critical years, but their life insurance policy will grow in value. This is anย asset that can be used when acquiring college funding for a child if the parent should so choose.
If you are a young parent looking for ways to help ensure your child can attend college, contact us to discuss how life insurance may play a role. We can help you take the steps today to help ensure the education of your child tomorrow.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Insurance Blogs
Beyond the Grave: Burial Insurance vs. Life Insurance Explained
Don’t Be Buried by Confusion: Understanding Burial and Life Insurance
From Bronze Age to Boomers: How Life Expectancy Went From Meh to Magnificent
How Long Will You Live? A Look at Life Expectancy Throughout History (and Why You Might Need Life Insurance)
Beyond “My Beloved Spouse”: A Guide to Choosing Your Life Insurance Beneficiary
The Beneficiary Bunch: Understanding Your Options
Life on the Edge? How Your Hobbies Can Affect Your Life Insurance Rates
Beyond the Premium: Unveiling the Unexpected Links Between Hobbies and Life Insurance
Unveiling the Different Players (and Why We’re Your Guide!)
Insurance Companies: Not All Created Equal! Find Your Perfect Match with Our Help
Cracking the Code: Cash Value, Loan Value, Surrender Value – It’s All in the Life Insurance Policy!
Beyond the Death Benefit: Unlocking the Hidden Gems of Your Life Insurance Policy
Beyond the Payout: 6 Unexpected Perks of Life Insurance You Might Not Know
More Than Just a Payout – Unlock 6 Hidden Gems for Your Loved Ones
Poppin’ Pills and Counting Coins: America’s Prescription Drug Dilemma
America’s love affair with drugs isn’t limited to back alleys and bong rips.
Ditch the Piggy Bank, Grab the Plan: Your Adulting Health Insurance Guide
Bye-Bye, Mom’s Policy! 5 Easy Steps to Your Adult Health Insurance Adventure
Life Insurance: Who’s Who in the Zoo (of Coverage)?
Feeling lost in the jungle of life insurance terms?