Baby Plans for College

Your little baby has a real shot at college when you use a life insurance plan with living benefits to fund the tuition.

In an example of a newborn, making payments into the policy for 18 years at $400 per month will yield cash of about $38,000 per year in years 19, 20, 21 and 22. Use that money to offset college costs.

For this example, there are no more payments due on the policy.  But when that baby is 65, due to compound interest, there is a significant amount of money available in the policy to be withdrawn (loaned) to the policy owner (the baby is now an adult).  Those funds can offset retirement expenses, travel, downsize housing, for another family members education (grandchildren) or maybe something else, like medical care.

How much acrues in the 65th year?  Well more than you would imagine. Millions. Why?  Compound interest is the answer again.

Well, the point is this: There are ways to fund college  that may seem out of the box, but a life insurance policy is a written contract between two parties which details the exact features, payments and benefits of the agreement.

The death benefit in this example is $700K.

In American history, no insurance company has failed to pay a valid policy.

If your family is inclined to buy life insurance for its members (dad, mom, children) consider life insurance with living and death benefits as a funding tool.