Parental Loans for Learning

Whole Life Insurance/Universal Life Insurance

Unlike term life insurance, which pays your beneficiaries only when you die, the value of a whole life policy can be accessed during your lifetime by taking a loan secured by the cash surrender value of the policy. These loans usually have a relatively low interest rate.

This type of policy uses one portion of your annual premium for life insurance and invests the other portion in an account where the interest compounds on a tax-deferred basis. When your child is ready to start college, this could be a good source of funds.

IMPORTANT NOTE: If you don't pay the money back, or you die with the loan still due, the amount of the loan will reduce the death benefit.

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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Investment & Insurance Services at Flagstar Bank is a trade name of Flagstar Bank. Infinex is not affiliated with Flagstar Bank. Certain insurance products are offered through Douglas Insurance Agency, doing business as Flagstar Investment & Insurance Services, which is affiliated with Flagstar Bank. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
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