College Planning

89% of parents agree: College is an investment in their child’s future.

                                                        ----How America Saves, Sallie Mae , 2014

Preparing for College Expenses

                                                         ----Trends in College Pricing, The College Board, 2013

Only 50% are saving

Only 41% have a plan

Average college expenses 2013

                           ----Student Loan Repayment Chart, Education and Credit Management Corp, 2014

$25,500/year average • 35% pay over $32,500 

How America pays for education

                                                          ----How America Saves, Sallie Mae, 2014

Borrowing Savings/income Relatives/friends Scholarships/grants

How Will You Pay For It?

Bank account Coverdell ESA

529 Plan Bonds

Mutual funds


Student loans

Home equity


Credit cards

Retail loans

Financial Concerns:

• Have we saved enough?

• What if the market crashes?

• How much will tuition be?

• What if I get sick or hurt?

Protect and Supplement with Whole Life The value of whole life insurance:

• Permanent life insurance protection

• Cash value guaranteed to increase each year

• Guaranteed level premiums and payment period

• Eligible to earn dividends Income tax advantages:

• Income tax-free death benefit

• Policy cash value accumulates tax-deferred

• Access to cash value with tax-advantaged partial surrenders and policy loans

Life insurance proceeds may help pay for college if you die.

What If I Get Sick or Hurt?

The Waiver of Premium can ensure:

• Coverage will stay in force, and

• Cash value will continue to grow.

Partial surrenders and policy loans can be used for any purpose.

Policy loans have:

• No application;

• No collateral requirements;

• No fixed repayment schedules;

• No credit reporting.

Policy’s cash value is guaranteed to increase each year.

Policy Cash Values

• Generally not considered for Financial Aid (FAFSA)

• Many states protect from claims of creditors.