Do You Have a Plan to Pay for College?

Here are some ideas to help you get started.

With the costs of college expected to continue to increase 5% to 8% annually,* it’s never too early (and often not too late) to start planning. Although there are many college planning methods available, did you know that whole life insurance is a good option for some people?

Four Ideas to Consider When Planning for College

Here are some factors to consider when planning for college.

1. Discuss who is responsible for paying for college. Will your children pay some of the expenses? Deciding early eliminates disappointments.

2. Don't ignore inflation. With the cost of college increasing at a faster pace than the rate of inflation, whichever college planning method you choose needs to keep up with inflation costs.

3. Don't sacrifice saving for your own retirement to pay for your children’s college education.

4. If possible, start planning early. Learn about several college planning methods and what each one has to offer.

Whole Life Insurance and College Planning

Although whole life insurance is not typically associated with college tuition planning, it can be a good option for some people. MTL's Covenant II whole life insurance, with its high early cash value, offers these advantages in the college savings process:

• It is not considered in federal financial aid calculations.

• It produces cash value, which can be accessed through tax-free loans or withdrawal/surrender of the paid-up additional insurance rider, to pay a portion of college costs. If the policyowner doesn’t’ use the cash value for educational funding, it can be used later to supplement retirement or for any other purpose.

• It offers a guaranteed death benefit, which can be used to pay college costs if the insured dies prematurely.

Contact your MTL Life Insurance Representative today to learn more. If you don’t have a representative, click here to find one.

*NCES.edu.gov
Base Policy Form No. 1BJ

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