The funds to pay for tuition could come from either the investment accumulated in the plan or through the guaranteed death benefit or permanent disability of the insured parent, grandparent or premium payer.
Life insurance would, on one hand, provide the needed funds to pay for a University education. On the other hand, funds from life insurance would help your family maintain a high standard of living for many years to come.
- You can make both regular and lump sum contributions to the plan
- You can also index your premiums automatically by 3%, 5% or 10%. This feature can help reduce the effects of inflation on your cash account and benefits
- You may choose to contribute via automatic bank draft, annually, semi-annually or quarterly
- You may request a premium holiday for a maximum period of 12 months, should you be running out of cash, depending on your policy account value
Your savings will be invested in a wide choice of funds. Our aim is to offer you a selection of funds depending on your tolerance for investment riks (conservative, moderate or aggressive).
If you choose our target date funds, also known as Life Cycle Funds, your investments will be automatically switched into more secure funds as you near the end of your policy.
Depending on your risk profile you should consider changing your asset allocations as you get closer to writing that first tuition check.
When university is far off, you often need the high growth investment vehicles which, by their nature, are usually subject to market fluctuations. However, when you get within two to four years of needing the money, one approach is to move into less volatile investments that can help you plan the payments with more certainty, and more peace of mind.
Utilizing a good risk assessment and asset allocation model for planning and then placing your investments with a company that provides the flexibility you need to adjust your portfolio is important for a good university tuition plan.