Planning and purchasing a life insurance policy while a child is young is one of the most effective ways to make certain you can help them pay for college.
Life insurance proceeds can help pay the cash needed to fund educational goals, according to Edward E. Graves, author of “McGill’s Life Insurance.” If private schools, higher education or disabled children who face special educational needs are in the picture, you can expect even higher costs for tuition.
In 2016, the average annual price for undergraduate tuition, fees, room and board was $20,090 at public 4-year institutions and $45,370 at private 4-year institutions, according to the CollegeBoard.org.
It’s also worth noting the numbers are continually on the rise.
But, what if your surviving spouse wants to pursue education or training on a part-time basis? The length and costs of their education may increase if they’re working at the same time.
The key, according to Marc Belletsky, spokesperson for The Hartford, is to start saving as early as possible and not underestimate the future cost of college.
“The more expensive the school, the higher the rate of inflation for the future,” Belletsky said. “It’s important to consider life insurance as a way to fund your child’s education because death interrupts any plan you may have had to build up savings.”
Belletsky suggests whole or universal life insurance as another excellent way to help pay for college.
“These policies have a cash value component that allows you to build up savings and access the account while you’re still alive,” Belletsky said.
Life insurance proceeds from a death benefit or a trust can also help alleviate these financial burdens if the worst should happen.
— The American College (@TheAmerCol) June 26, 2017