Many people don’t understand how insurance can help prepare their bank accounts for having to pay for college. Life insurance can actually be the difference between getting your kids through college struggling with debt or debt free.
Here are a few of the ways that life insurance can help you pay college tuitions:
- Tax advantages while you’re alive: Some insurance plans will allow you to take out a tax-free loan. This is essential. Many people never become debt free simply because of the taxes involved. This is the best option for people who have no choice but to take out a loan. Don’t turn down this type of tax advantage.
- Tax advantages while you’re dead: You may not want to talk about what happens to your family after your death. However, you do need to have a plan for how your family will pay off tuition loans if something happens to you. Some types of life insurance will give tax benefits to your beneficiaries after your death. These benefits can be used to pay for education.
- Access to a cash flow: Along with tax advantages, some insurance policies give you access to a steady cash flow. You are allowed to take this money out for whatever you want. What better way to spend this money than on your kid’s college tuition?
- Hidden money: The money that you put into your insurance and the cash that you have available through it are not counted toward your income when you apply for college loans. That means you can qualify for a higher loan and more benefits. When you look at it this way, life insurance can pay for itself.
- Investments:There are investments built into life insurance policies, and your insurance company will likely encourage you to invest more. If you have access to the money you have invested, it can help you put your kids through college. Different investment opportunities will give you different benefits and advantages. Make sure that you talk to a professional before you invest any of your hard earned money.
- Unforeseen circumstances: We here at SOGO always try our best to help prepare you for any unforeseen circumstance that may come your way. Some insurance policies will give you benefits that will help pay for college tuition and pay off loans in certain circumstances. These unforeseen incidents may include the death of a student, the death of a tuition payer, and withdrawal due to medical reasons, family emergencies, or problems with cash flow.
It can be hard paying for college tuition, even if you have a good job and are in perfect health. What happens if you lose your job? Or you or your child has serious medical problems? What happens if you die?
You need to ask the hard questions if you want to provide for your family and your kid’s education. Contact the professionals at SOGO if you want to know more ways that you can use life insurance to help pay for your kid’s college tuition.