The thought of financing college for your child can be overwhelming. The cost for a state university is prohibitive for the average family. Private universities' annual costs can rival your salary. Most families with young children probably haven't even begun to consider these costs -- they are too busy putting food on the table and paying for their home. But the early years are a great time to begin planning for future educational expenses.
Consider Insurance Products
When parents do begin to think about educating their offspring, many things come to mind. They consider how much they will need to save, whether someone can take on a second job, and they hope that perhaps grandparents will contribute to the cause. Perhaps Junior can get a job to help or land an athletic or academic scholarship. There's no easy, straight line, and college funding will most likely require several creative strategies.
Insurance policies and annuities aren't usually at the top of the list of solutions for funding education -- if they even make the list! But insurance products can be smart tools for investing in your child's future. The cash value in your policy will grow along with your children, and you can borrow against it. The premiums you pay on a whole life policy are tax deferred. They also allow you flexibility because if no college funding is needed because your offspring joined the military or left to seek fame in Hollywood, you still have your life insurance policy fulfilling its original purpose.
How Can Annuities Help?
Annuities will also grow tax-deferred, and at a future time you will receive payments that you can use to help with college or university. Neither annuities nor permanent life insurance are reported on the FAFSA application, so that potentially increases your child's eligibility for additional tuition aid such as Pell grants or even work study programs.
And Then There is You
Maybe you are at a point in your career that requires a higher level of education to advance in your profession, or you've decided to change careers. Our professionals can help you put together a strategy for not only your life planning but your educational and career plans. We've been there ourselves, and we want to help you reach the goals you have for you and your family. Please contact us for advice you can trust.