Many parents hope and plan for their children’s future education. But what if an unexpected death or illness prevents you from working and saving for those expenses? We at Lowdermilk & Associates have partnered with Midland National to offer life insurance solutions that can provide a way to help fulfill your wishes and financial goals to fund an education, by providing death benefit protection in your absence or through loans and withdrawals if the policy remains inforce.
A solution from an unexpected source
Using your personal savings should be the primary source for college funding. However, there is one “flaw” with personal savings. If the family’s primary breadwinner passes unexpectedly, personal savings plans generally come to an abrupt end. A life insurance policy can help ensure the full funding amount is immediately available to pay for college. But you don’t have to die for this plan to work. A permanent life insurance policy, in addition to death benefit protection, can actually help pay for college costs. A policy that accumulates cash value, such as an indexed universal life policy can provide a way to help pay for college costs. Some of the advantages include:
Tax-deferred growth: Cash value growth inside the policy is tax-deferred.
Policy loan options: Access cash value from the policy to help pay college costs through policy loans, which are generally free from income tax.
Submit a request using the form on the right side of this page to request more information.
*The College Board, Trends in College Pricing and Student Aid 2022, https://trends.collegeboard.org/college-pricing. Accessed June 2023.
**The tax-deferred feature of the indexed universal life policy is not necessarily for a tax-qualified plan. In such instances, you should consider whether other features, such as the death benefit and optional riders make the policy appropriate for your needs. Before purchasing this policy you should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.