College education is one of the most expensive responsibilities that parents will pay for their children. Unfortunately, parents are not always prepared to pay the expenses of their child’s tuition and room and board. A universal life insurance college savings plan can help parents and students pay for their college tuition. It can also prevent you or your child from being in debt from student loans after graduation.
Benefits of a Universal Life Insurance College Savings Plan
There are many benefits that parents should know about using a college savings plan to save for their child’s college tuition.
- High Rate of Growth – The policy will be compounded at a 3% rate guaranteed. It can grow at a higher rate, but it will never be less than 3%. This could add tens of thousands to their life insurance savings account.
- Lowest Premiums – These policies have the lowest rates because the premium is based on the policy owner’s (the child’s) age when the parent takes out the policy. Your child could pay the rate of a one year-old for the rest of their lives.
- Transferable to Child – Once the child marries or grows up, the parents can transfer policy to their children.
- Borrow Against Your Plan – You can take loans out on your policy, if you need to pay for education or need emergency cash.
This kind of policy also provides relief in the chance of a child’s untimely death. If a child passes from a medical illness or fatal accident, they often leave expenses for the family. The family will receive the death benefit of anywhere in-between $75,000 to $250,000 in coverage. This life insurance policy attempts to ease the family’s worries during this difficult time.
If you have any questions about how our universal life insurance college savings plan can help you prepare to pay for a college education, talk to one of Rafail’s insurance agents. We can discuss any of your questions or concerns. Give Rafail Insurance a call today!
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