With rising education costs and with the recent poor performance of some traditional college savings plans, Trans World Assurance recognizes that families need help with developing a successful college funding plan now more than ever. For over 50 years, Trans World Assurance has helped families develop a plan by offering college planning solutions and scholarship assistance.
With the average cost of a 4-year degree from a public school at now over $50,000, the need for an effective college funding plan has escalated. Accumulating the cash needed to pay for college while offsetting college expenses by getting scholarships and maximizing financial aid is crucial for many families.
Early stage planning is essential in developing a successful college funding plan, and Trans World Assurance can assist families with their plans by offering valuable advice and tools. In an effort to better assist families with college planning, Trans World Assurance has added many college planning tools to its website, including the following:
- Financial aid calculators
- Expected Family Contribution (EFC) Worksheets
- Articles on funding a college education
- Links to valuable college planning websites
- Blog articles related to college planning
In addition, Trans World Assurance agents can also offer families valuable advice and information about the types of plans available. Selecting the right college funding plan is critical, and with the recent poor performance of many traditional college savings plans, such as 529 plans and Coverdell plans, many families are looking for safer and more flexible college planning vehicles like life insurance.
A Whole Life or Universal Life insurance plan, like the ones offered by Trans World Assurance Company offer a variety of benefits:
- Provides funding for college if a parent dies
- Grows tax-deferred
- Contribution is not limited
- Guaranteed rate of return
- Not subject to loss
- Excluded from State financial need analysis allowing families to qualify for more financial aid
- Funds may be used for things other than college
“The flexibility of a whole life insurance product with a tax deferred annuity is essential,” stated Patrick Collis, a college planning advisor and Trans World Assurance agent. “Take a traditional plan, like a 529 college savings plan. It offers tax deferred growth, but it can only be used for college and nothing else. Life insurance offers tax-deferred growth, but if a child gets a scholarship, the funds may be used for other things such as retirement, a home purchase, or almost anything else.”
With a Trans World Assurance life insurance plan, parents dedicate a specific amount to the life insurance policy, as little as $30 can start a plan. A portion of the money funds the life insurance benefit, but a majority of the money over time is directed to the cash accumulation side of the policy, which grows tax deferred. When a child is ready for college, parents withdraw money from the fund and pay for school with no adverse affect to their financial aid package.
Trans World Assurance’s Whole Life and Universal Life insurance plans have been approved by SAGE Scholars Tuition Rewards Program. This tuition scholarship program allows families to earn a guaranteed scholarship for up to one year of tuition at any of the 275+ participating colleges and universities nationwide.