The BHR Life Companies | Using Life Insurance to Save for College
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Using Life Insurance to Save for College

Using Life Insurance to Save for College

There are many ways for parents to save for their child’s education and it is important to remember that a life insurance policy is one of those ways. A life insurance policy can help in the event of your untimely death or even while you are still living. To find out how BHR can help with your life insurance needs, contact us here

Using a life insurance policy to pay for educational expenses can offer certain tax advantages. For instance, in the event of your death, your family can pay their education expenses and costs while taking advantage of the income tax-free death benefits. Some policies allow you to borrow against your policy without any tax penalties.

Certain types of life insurance can offer guaranteed cash value, so that you may be certain of the amount that will be available to yourself or your family members. You may be able to borrow against your policy, while still living, to use for tuition and educational expenses. Or, your policy may be active in market participation so that your policy has the potential to grow in value for yourself or your family.

When choosing a policy with education expenses in mind, you may choose between a term and permanent insurance policy. If you are looking to pay you child’s college expenses in the event of your unexpected death, you would go with the term life insurance. Simply choose the length of time you need the coverage and the amount your loved one would need. Permanent policies offer the ability to take withdrawals or loans against the policy’s cash value, while continuing to grow tax deferred.

Financially planning for your children’s educational future can be overwhelming and confusing. Sit down today with an education advisor to make the best decisions for you and your family.

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