Find out how some families are lowering their taxable income...with life insurance.
When your student applies for federal student aid (with the dreaded FAFSA form), his or her eligibility depends on your taxable income.
The problem is...many forms of income that don't count on your income tax do count for the purposes of federal aid eligibility. They include:
- Distributions from your retirement fund—these count as taxable income on next year's FAFSA
- Investments such as stocks, bonds, mutual funds, and CDs
- Value of investment real estate (other than your primary residence)
- Coverdell educational savings account balance and/or 529 college savings plan account balance
- Qualified tuition program balance.
In comparison, life insurance does not count against you!
The cash value of your permanent life insurance will not affect your student's eligibility for federal financial aid.
To see if permanent life insurance such as Indexed Universal Life (IUL) is right for your family's needs, contact us for a free one-on-one consultation.
Speak with an agent to learn more. Click here to find an agent in your state.