Many life insurance agents recommend Universal Life Insurance as a college savings vehicle since it is not counted for financial aid purposes. However, many independent financial experts think that insurance agents making such recommendations are either crooked or ignorant. We'd love to hear your opinion, as well as the benefits of these policies as explained to you by your agent.
Yes, but with caution!
- UL's are good to use as build up for cash. Just make sure you do your homework and ask the Financial Services Rep what the cost of the policy is and see if you still come out ahead! If you don't want to take risks and participate in the market, use a fixed account. Again, check out your costs on the policy!
- —Guest Ron Benjamin, MFP
Life Insurance is a GREAT option.
- I've learned from other people's mistakes. Too many friends have lost a ton of money in their 529 college savings plan. The life insurance is safe, has a pretty good yield (especially the indexed plans - not the variable plans), doesn't count in the financial aid equation, and is self-completing if the parent dies. You should definitely put some of your savings there.
- —tjinca1
Definitely a Ripoff
- I'm not sure I can see how these policies make sense. It's not like I was going to qualify for aid anyway, so why put my money in an lousy investment.
- —Guest CollegeDad