Once we have kids, we start planning for their future and trying to figure out ways to provide them with anything and everything they could possibly what. This also, typically, includes a chance at furthering their education in college. College tuition is expensive though so it never hurts to start thinking about it as soon as possible. Life insurance products for family members can really help to reduce these costs.

Gerber offers a ‘Life College Tuition Plan’ for young children. They offer premiums starting at just around one dollar a day where the benefits offered pay out around ten thousand dollars. If you pay a premium of around three dollars per day, then your college benefits increase to about twenty-five thousand dollars. Their highest level is around six dollars a day and pays out about fifty thousand dollars for tuition. When all is said and done, you end up paying out about seventy-two hundred dollars at the maturity of the policy while it pays you back ten thousand in benefits, which is a gain of about twenty-eight hundred dollars.

The tuition plan that is offered from Gerber is considered an endowment life policy. Their plan offers you the ability to decide what is affordable. At the end of either a ten or twenty year period, the policy pays out anywhere from ten thousand to one hundred and fifty thousand dollars with their guaranteed payment. The benefits will be dispersed as long as the premiums are paid on time whether you are there anymore or not. It is helpful too that the benefits are not linked with interest rates or the stock market. This means that you do not have to worry about fluctuations in either department affecting your benefits. All in all, it is guaranteed through Gerber that, in the end, your benefits that will be paid out will be greater than the premiums you have paid throughout the years.

Having a plan for your child’s college education is important. Right now, just one year of tuition, on average, at an in state public college is fourteen thousand dollar. That same college for out-of-state students increases to twenty-five thousand dollars. A private college’s tuition costs average around thirty-four thousand dollars per year. Each year tuition costs increase dramatically. It is estimated that costs for college have steadily increased about four to six percent each year. Scholarships and financial aid are amazing resources to have, but it should not be relied on to cover all of the costs for your child’s college education.

Other standard family life insurance policies can be used to pay for college tuition as well. Most of them only give you the money when the policyholder dies though. Some life insurances do accrue a cash value over time that can be used as you see fit within the terms of the policy. That is something to talk with your life insurance about. Other policies will also return the premiums you have paid at the end of the term and you can use that money at your discretion.

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Category: Finances
Keywords: college tuition,thousand dollars,life insurance,family life insurance,family life