Purchasing a permanent life insurance policy on yourself when your child is young can also be a smart financial move because currently, the cash value in a life insurance policy is not considered an asset when applying for Federal Financial Aid. Life insurance is also the only method of education funding that is self-completing in the event of death or disability. If you become disabled, you have access to your policy's cash value, which continues to grow as your premiums are waived with the Waiver of Premium Benefit. If you die, the policy proceeds will generally be tax-free income to your beneficiary. That's why good intentions are not enough.
Action is necessary.
Northwestern Mutual can help you guard against the income loss that results from a disabling illness or injury. After analyzing your current situation and learning about your goals for the future, your Northwestern Mutual Financial Network Representative can recommend a Disability Income Policy that will provide you with the kind of income protection you need. An annuity can generate much-needed dollars when your child is ready for college, and continuing throughout your child's educational years. Annuities provide payments to an annuitant, either immediately or at a future date. Today, more than ever, education is paramount to a child's success.