Back to School - College Funding Plan

Tuesday, September 8, 2020
Stephen Quirk
students sitting at a desk


Labor Day weekend is over and it’s back to school time. As the cost of a college education continues to increase, now is a great time to begin saving for those costly tuitions. One suggestion to help you save for your children’s future is to use a cash value life insurance policy such as an "Indexed Universal Life Plan".


The advantages of using such a life insurance plan, include:

Tax deferred growth;
Tax free withdrawals;
Index funds for growth;
Will not impact financial aid opportunities;
Self-completing plan if the insured (usually a parent) passes away prematurely.


For example, take a look at the following scenario:


The insured is a 32 year old male with $1,000,000 in life insurance protection.
$10,000 annual contribution, for 18 years, followed by $50,000 annual withdrawal for 4 years of college expenses.
No more premium contributions after the 18th year. 
At age 65, the cash value is approximately $375,000.
At age 85, the death benefit is approximately $2,282,000.


Of course, each individual scenario will vary. Please contact your FNA Representative and start planning today!


Our Individual & Executive Benefits Team will work side by side with you to create a plan design that meets your client’s needs in order to successfully attract & retain top tier employees. For more information, please visit our Executive Benefits page, or contact:

Stephen Quirk
Assistant Vice President, Executive Benefits
FNA Insurance Services
516-348-7186 | [email protected]