Skyrocketing college costs and mushrooming student debt has many families terrified about how to pay for college. The cost of attendance for college has increased almost 100% in the last 10 years and because of this, educational loans make up 70% of debt for people under the age of 35. So what does all this have to do with life insurance? According to LIMRA, a worldwide research institution for insurance and financial planning…a lot!
LIMRA research has found that more and more families are using whole life insurance to pay for college. This year’s Insurance Barometer Study revealed that 1 in 5 families who purchased life insurance did so with the intention to help cover the costs of college.
Understanding how to fund a properly structured, whole life insurance policy to save and pay for college can make a significant impact on parents and students financial futures. Early implementation is ideal because of the financial powers of compounding interest and time value of money. But, it is never too late to start a policy.
The best time to plant a tree was 20 years ago; the next best time is today. The same is true for creating an efficient strategy to pay for college and retirement. I teach families how to use retirement dollars to pay for college, and college dollars to pay for retirement. It’s time to get efficient with your money!!