Consider these two scenarios:
Phillip and his wife have four children – three of which are currently in highschool. In the next four years, they all will be headed off to college. While Phillip and his wife both have great jobs, they are having a hard time figuring out how they can pay for their children’s college education.
Because they both have great jobs, their children will never qualify for financial aid, and they want to help their children avoid the burden of student loans as much as possible. What other options are out there to help pay for their children’s college tuition?
Janet has been with the same company for the past 25 years and loves her job. However, her mother, who lives one state away, recently had a heart attack. She’s recovering well, but doctors suggests hiring a full-time nurse to come help her along her recovery.
Janet’s mom is living off social security and a very small retirement fund which makes hiring a full-time nurse very difficult. Janet would love to quit her job and help her mother, but she has bills to pay and isn’t ready to retire. What options does Janet have to help her mother?
Life Insurance can help
One option that both Janet and Phillip should consider is borrowing against the cash value of their permanent life insurance.
What does that mean?
Permanent life insurance is designed to last a life time. Those who have this policy pay a premium every month, which over time accumulates cash value. Janet or Phillip can potentially borrow against the cash value of their policy to help them pay for medical bills or college education.
Life insurance can be useful in situations other than death
Most people don’t know that that money from your permanent life insurance can be used for just about anything: To start your own business, send a child to college, take time off work to care for a sick family member. For those in situations like Janet or Phillip’s, it’s both helpful and relieving to know there are less obvious options out there to help during a difficult financial time, or when embarking on an exciting new adventure.
However, before making any decisions always consult with your financial advisor to make sure it is the best option for you. You can always start by contacting us at Advisors (844) 272-0525 and we can always point you to the right way.