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COLLEGE FUNDING

Help college happen with life insurance

A source of funds that’s often overlooked

With college costs continuing to rise, it’s never too early to consider opportunities for possible funding. For parents or grandparents who want to help a child afford college, there’s an option that can be offered right now.

Life insurance can help supplement tuition expenses

The main reason for buying life insurance is to provide loved ones with a death benefit that’s generally income-tax-free. This death benefit can be used to help pay for college expenses or other needs.

But that’s not all. Because fixed index universal life (FIUL) insurance also provides accumulation potential, it can be a source of funds that can be accessed through policy loans or withdrawals.

Advantages of FIUL as part of a college funding strategy

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Tax Advantages

FIUL offers a powerful combination of three tax advantages: 

  • A generally income-tax-free death benefit 

  • Tax-deferred accumulation potential

  • Income-tax-free loans and withdrawals

Flexibility & Control

The policy's available cash value has the ability to be accessed for any purpose the policyholder chooses. So if plans change down the road and the child does not go to college, the policyholder can access the cash value for other needs.

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No eligibility requirements

With life insurance, there are no complex eligibility requirements or income limits to consider. And under current rules, the money received from policy loans generally won’t affect the student’s eligibility for other financial aid.

Learn more about supplementing college funding with life insurance.

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