College costs have gone up considerably the last decade, and tuition hikes have shown no sign of slowing. How can you help cover the ever-rising cost of your child’s education without wiping out your own financial security? Whole life insurance may be one way.
What is whole life insurance?
Unlike term life insurance, which only provides protection for a set period of time, whole life insurance coverage lasts for the policyholder’s lifetime. While premiums are higher than term insurance, they don’t increase over time, and the policy accumulates a tax-deferred cash value that can be borrowed against if needed.
The cash value your policy accrues may be used for many expenses: to cover a loss of income, purchase a house, or pay for education costs. Using these funds might decrease the overall value of the death benefit, but having cash available when needed means you’re probably less likely to dip into things like your retirement funds.
Certain types of whole life insurance policies pay dividends, that can increase both the cash value and death benefit over time—with the potential of making more money available when you need it.
It is important to note that dividends are not guaranteed, past performance is not indicative of future results, and actual policy owners experience will vary.
There are a several options for whole life insurance available through OneAmerica.com. A financial professional can help you pick one suitable for your financial goals. Let the companies of OneAmerica Financial℠ help you find a financial professional near you.
Life insurance should be purchased by individuals that have a need to provide a death benefit to protect others with insurable interests in their lives against financial loss. Life insurance policies' cash values are not considered liquid. Withdrawals and loans from a life insurance policy reduce the life insurance policy’s death benefit and cash value. Life insurance is not a retirement plan, investment, or savings account.