ALL AROUND OLD BRIDGE
Part ll Michael Vitale 104 Interchange Plaza, Suite 102 Monroe Township, NJ 08831 Cell: 201.306.5988 Office: 609.655.3066 x255 Fax: 609.655.4959 Email: firstname.lastname@example.org Website: www.vitaleinsurance.com Continued from ALL Around Old Br idge August E dit ion Second of all, 529 plans have another significant downfall...the accumulated total will be counted and regarded as income when you (or your child/children) file financial aid paperwork for college. This will directly affect the way in which you are considered for income-based financial aid. Additionally, there could be a large disparity between the accumulated total in the 529 plan and the amount you would not receive from financial aid. However, as in most cases, there is a solution to this dilemma... Indexed Universal Life Insurance (â&#x20AC;&#x153;IULâ&#x20AC;?). An IUL policy can provide similar benefits with more options and greater flexibility. First of all, a need for permanent life insurance must present in order to move forward with this exact solution. IUL insurance allows you to accumulate cash values based on a stock index, like the S&P 500, on a tax-deferred basis. You can do this with ZERO risk of losing your money in a stock market crash, since your money is not invested in the market itself. Many of these polices will have generous varying caps on potential earnings, but the constant is that your money CAN NOT BE LOST. This is downside
protection. The tax-deferred cash value account can be accessed in later years with no tax hit through policy loans which in many cases will have an interest rate of 0%. So far, this may sound very much like a 529 plan...except that the money you accumulate can be accessed at ANY time, for ANY reason, with no caveat designating it only for higher education. Also, the cash value in the IUL will not count as income on a financial aid application. Therefore, your family will have full access to available financial aid, based on current income. There are other positives to an IUL policy, it will contain a death benefit, which may be guaranteed until death....guaranteed premium payments which can remain on a fixed schedule or can be altered on a yearly basis. These, and other policy options, can be discussed and decided when your contract is originally constructed between you and your licensed insurance professional. Overall, you have options. Despite the elevated and still-rising costs of higher education, you too can assist your child/children with college tuition...and you can start now. Contact a licensed insurance agent to assess your situation, discuss your options, and choose the best course for you and your family.