Can Life Insurance Help Pay for College?
Paying for a college education can be an overwhelming prospect for many parents. Life insurance can be a great tool to help. Proper life insurance coverage payable to the beneficiary can insure the money is there when needed for college costs upon the death of the family members providing financial support.
Mom and Dad are in the mid-30's and have 2 children ages 4 & 2. Both parents would like their children to have the opportunity to attend 4 - yr. private colleges. They feel that if they both live and earn the incomes they expect that they can save and invest for the children’s college expenses. The problem is that if either parent died the surviving parent could not save and invest to accumulate the money needed for college. An excellent solution to their situation would be to consider a life insurance amount equal to the projected costs of college to insure that the policy proceeds cover college costs if they die before the children attend college. Term life insurance is an excellent choice of product to accomplish this solution as the plan can be tailored to meet the specific period of time needed to provide the money until the children complete college.
The term life plan can be terminated when the need no longer exists, renewed to provide coverage for a longer period of time or converted to a permanent plan of insurance for future needs.
An additional need of life insurance exists when individuals take college loans to finance college education. The life insurance proceeds can be used by liquidate the loans in the event of death of a borrower.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.