Financing a college education at the rate that school fees continue to rise, can be extremely difficult for a single parent. For example, in Illinois is the range for 2010-2011 in-state tuition and fees for a University of the State such as the University of Illinois at Urbana-Champaign $ 13,640 while the tuition for a private University, as Northwestern University is $ 40,247. Other educational institutions in Illinois may school fees that might be a few thousand dollars more or less. Each educational institution must on their own merits. In addition, a two-year junior college are an option for the first two years. Or even the liberal arts universities completely forgot about it and choosing a technical or trade college maybe even the best option depends on the suitability and the interests of your child.
Nevertheless, if you need to prepare to meet at least one parent some of the cost of financing your child's education because your child and clear depending on you, the value of the life insurance is a must for the treatment.
There are three main types of life insurance policies to consider: whole life, Universal life, and term. Whole life provides a death benefit, tax-free guaranteed money building, an opportunity to borrow money without requirements, and proceeds distributed tax free.Term provides a larger face amount of the same premium, but only for 10, 20 or 30 year term plans on some allow for return of premium to the end of the time period can be a good option to consider. Universal life is essentially a hybrid that incorporates the best features of whole life and term, interest rate sensitive, has a guaranteed cash value, and allows for flexibility in the insurer.
Here is an example of an entire life cash accumulation of for a 38-year-old female single parent with a four-year-old child. For a monthly premium of $ 97.06 offer a large life insurance company here in Illinois a death benefit of $ 100,000 and $ 12,471 in cash value in 14 years. she can borrow this money without complying with any qualifications thereto and never pay it back if they don't.The loan amount would only be deducted from the benefit of her death. While this loan is not completely from upbringing of the child will pay, it would cover some important cost and would be self-completing by paying $ 100,000 if the beneficiary dies before the child they are college age.
The other option that allows you to contribute to the education of your child is a 529 plan, however, this is considered as an investment decision with both the advantages and disadvantages and not guarantees.Moreover, if this is just an investment plan, it is not self-completing in the case of a premature death.
Should a whole life insurance plan your large vehicle for financing your child's education.If you choose a 529 plan to complement it, do your homework and choose carefully.
Keep up to date with timely financial and personal growth tips and strategies. http://www.yourconsultantsite.com and Visit http://www.youcontrol.blogspot.com. you can subscribe to the monthly newsletter of financial/personal growth on both site as well as read and download the free articles and e-books. Will a Barnes is an advisor to the financial and personal growth based in Illinois. Mr Barnes has performed hundreds of workshops on parenting and advised parents for decades.
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