Sending a child or grandchild to college comes with new insurance responsibilities. Whether they're already in college or still have a few years to go, your family's insurance needs change when your children go off to school. Addressing three key strategies will help you find comfort knowing you've protected everyone in the ways they need.
Life Insurance
If you're a parent or grandparent who cosigns a private student loan, then a life insurance policy for your college-bound child could be worth it.
Private student loans aren't discharged upon the borrower's death - as is often the case for federal student loans. So, if something unfortunate were to happen to your college student and they pass away, you as the co-signer are responsible for their debt. As a result, a little extra investment in protection today can potentially save you greatly in the long run.
Long-Term Care
If you don't already have long-term care (LTC) insurance, you may want to consider taking out a policy as you send children to college. Financial responsibilities start increasing once college is here. You can lessen these burdens by protecting yourself and your family with LTC insurance.
Costs associated with services such as nursing home care, home modifications, and hospice care can add up quickly. Should something happen to your health while your child is attending college, you'll help minimize their financial strain with your insurance protection.
Annuities
As a financial vehicle, annuities can help you plan to meet short- and long-term goals. They can withdraw this money for any purpose when they need and want, beyond just educational costs. You need to make sure your children or grandchildren understand that you want them to use the funds for their education. Note: When they do take withdrawals, they pay must pay tax and penalty on the earnings.
A little insurance planning today can help you greatly tomorrow. If you'd like to talk about your insurance strategies for your college-aged children or grandchildren, feel free to call us – we’re always happy to talk!
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The content within this presentation is for informational and educational purposes only and does not constitute legal or tax advice. Customers should consult a legal or tax professional regarding their own situation. This presentation is not an offer to purchase, sell or exchange any product. Insurance products and any related guarantees are based upon the claims paying ability of an insurance company. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.