Children Insurance Or College Funds?

[ab305]

I run a fairly large parents / kids site and parents ask all the time about insurance and college fund options. I basically tell them to google as I am not knowledgeable of this industry.

Can someone recommend the following that I can relay to parents with kids that are between the ages of 0-12:

1. Insurance besides health that they should look into
2. Any college saving fund options.

Thanks!

 

[DHK]

You can find plenty of articles for your site at www.ezinearticles.com and search for life insurance college funding.

Life insurance college funding strategies aren't necessarily about FUNDING college, but about maximizing the financial aid opportunities as life insurance, annuities, and retirement plans do not count in the FAFSA calculations. It's a complete assessment of a family's income, assets, liabilities, home equity, and everything else, and optimizing it for growth as well as having it not be a factor in college aid.

This is not something that a consumer should do on their own, but only with the help of a qualified insurance and financial professional.

 

[ab305]

DHK

Thanks for reply. That sounds like the best best. Send them to a professional.

Should I look into independent agents on this site for health / life / financial planning to send these leads to?

As I just sent an email to list of parents asking if they are interested in college financial planning or life insurance and i got hundreds of responses.

Thanks

 

[DHK]

Two issues I'm thinking of:

1) Financial advice is based on the skills and knowledge of the agent/advisor. By my estimate, less than 5% of agents/advisors have the necessary training to do the holistic job.

2) Financial advice is also limited to the licensing of the advisor. For example, I am only licensed in California, so I can't (at this time) work with anyone outside of my state.

There are quite a few people on this site I would trust for such advice: BNTRS (I think he's licensed practically nationwide), scagnt83, and Larry Tew. There are others on the forum, but these are the ones that stand out to me.

You can reach Brandon Roberts (BNTRS) at his site here: The Insurance Pro Blog

I work with people best in-person, rather than over the phone or via webinar. Maybe one day, that'll change, but not today.

 

[pfg1]

Good advice from DHK.

Another thing to consider... whether or not the advisor truly understands the ins and outs of college planning and funding. I used to do a good bit of it, and while there are many generalities that "most" advisors know or understand about how to plan and fund college, there are a ton of things that "most" do not.

My suggestion is to have your people work with someone relatively local if at all possible, and someone that is trained and educated in the college planning area. There is alot more to it than just buying a 529, or ins policy, etc.

 

[marindependent]

The best site about college savings plans, 529 plans is this site:
Savingforcollege

 

[DHK]

 

[TampaHound]

I learned something new to day as well. Great advice and resources as always DHK.

 

[Golfnut2112]

That video is a downright scary with all the lies and half-truths.

 

[DHK]

The biggest omission of this video is the lack of disclosing that the insurance contract has its own fees and costs that would exceed those of 529 plan mutual funds during the first 10 years of the contract. During the first 10 years, a 529 plan - assuming no market losses - would have more money.