Protect Your Children From Student Debt with Life Insurance

As you have likely seen, student loan debt forgiveness is making headlines. Regardless of how you feel politically about this loan forgiveness, from a financial planning perspective this is a good reminder of how much it costs to go to college and the incredible amount of student debt that can be incurred as a result. As countless news stories can attest, this debt can hang over students for years after their graduation.

How Can I Protect My Children From Student Loan Debt?

If you have children (or grandchildren), you want to give them every opportunity to excel that you can, including access to the best education opportunities possible. Their education is one of the most important and valuable investments you can make. However, you don’t want them to go into such deep levels of debt that it takes them years (or hoping for government intervention) to pay it back.

Like saving for retirement, it is important to plan ahead for your children’s college expenses, including establishing a college savings plan for them. The good news is that, also like saving for retirement, there are tax-favored ways to save and pay for college. Among the most common and popular options are the 529 Savings Plan, a Coverdell Education Savings Account, and cash value life insurance.

Learn More About College Savings Plans

Visit our “College Savings Plan” webpage to learn more about different tax-favored college savings plans and to compare the benefits and downsides of each option. Doing so can help you to determine which savings plan (or co

mbination of plans) would be the best for you and your children to help them pay for college.

Once again, when the time comes for your children to pursue post-high school education, you want them to be able to afford to pay for that experience without taking on heavy loads of student debt that could burden them, or you, for years to come; the kind we are reading about in the news.

Take the first step towards helping your children lay the groundwork of financial security for life by helping them save and pay for college.