The primary purpose of life insurance is for death but it can also be used for funding a college education. College rates are rising and with it so are student loans. It’s times like this that it’s worth it to research different methods of paying for college to avoid taking out a loan.
Some insurance specialists will swear by paying with a cash value life insurance policy. If you’re interested, here is how you can pay for college with a life insurance policy.
You can use your life insurance policy to access a tax free loan that will accumulate a cash value that is tax deferred. These sources can then be used as a tax free loan to pay for college tuition costs.
There are advantages and disadvantages to paying for college with life insurance- it isn’t for everyone. Whether or not you choose to use this as a way to pay for college really depends on the child’s age, you income, and when you started your college saving plan.
This is a great plan for people who have planned early because it will take up to 10 years to accrue the amount of money needed for college.
Located in Worth, Illinois, Reta Insurance Agency can help you get the best out of your auto insurance. Contact us for a quote today!