Tampa Parents are “most definitely” concerned about saving for their children’s higher education. However, most of the parents are too financially strapped with repaying debt, paying off their mortgages, saving for retirement and covering everyday expenses to be able to do much else.
One good alternative way to save for College is through Life Insurance. Parents or grandparents can use life insurance to fund their child’s or grandchild’s post-secondary education by building up and then tapping into the excess cash value within an insurance policy.
The benefit of this strategy is that the growth would be tax-deferred inside the policy, while it is building while the downside is that the parents or grandparents will lose control over the money put into the policy and the coverage offered by the contract.
While life insurance as a college savings plan may not be for everyone, it’s an approach to saving that is well worth serious consideration. It provides an array of benefits that far exceed the features found in 529 Plans.
It’s also noteworthy that life insurance can achieve a rate of return that competes favorably (or even exceeds) returns found in 529 Plans.
“With life insurance, it doesn’t matter how you use the cash,” says Michael Minter, managing partner of Mintco Financial (phone 813-964-7100) in Tampa, Fla. A student can use life insurance savings for college, a down payment on a house, to start a business or for retirement, he says.
Phone 813 964 7100