What is a Child Savings Plan?
A child savings plan can help you save money for your child’s education and future without the risks and restrictions that can come with a 529 account. Index universal life insurance is a great alternative to traditional college savings account.
It may sound strange to use life insurance as a savings vehicle, but index universal life is different from other insurance policies. This policy has living benefits so you can access your money without penalties and gain interest. As long as the policy is active, you or your child can withdraw money from the policy without paying it back. This way, you can put money into the account and let it grow until your child is ready to use it.
There are many benefits to index universal life insurance. There is no market risk, meaning that you will gain interest when the market is up, but you will never lose money when the market is down. This ensures that your money will only increase, leaving your child more money for their future. This insurance is also tax deferred and there are no rules about what your child can or cannot do with the money. With a 529 account, your child will be penalized if they choose to use the money for anything other than school related expenses. With this policy, your child can use the money without penalties, even if he or she decides not to go to college.
Child Savings Plan Provides:
Every parent wants their child to have bright financial future, and you can provide that for your child with index universal life insurance. Many parents believe that a 529 account is the only way to save for your child’s education, but there are many more benefits with our child savings plans. These benefits include:
- No market risk – you will not lose money if the market is down
- Interest is tax-deferred, so you can put off paying taxes
- You will not have to pay income tax on withdrawn money, only on the interest
- No restrictions on what you can or cannot use the money for
- No penalties for withdrawing from the account
- You can access to your money at any time for emergencies or other expenses
- Includes a death benefit as well as a living benefit
Our team of highly skilled licensed insurance specialists will work with you to develop a plan that provides the coverage you need at a price you can afford. To learn more about these and other benefits of our Child Savings Plan, please fill out the form below today and one of our licensed agents in your area will contact you. We look forward to hearing from you!
Note: Not all benefits are available in every state. Please ask your insurance specialist for more details.