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Reply to Using Grandparents' Life Policy to Fund Future College Expenses?     
Old 07-26-2017, 02:26 PM   #1
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Using Grandparents' Life Policy to Fund Future College Expenses? Using Grandparents' Life Policy to Fund Future College Expenses?
Hi - Has any agents structured a college savings strategy by taking out a perm life policy (ie. last survivor-ship, SPIUL) on healthy grandparents to fund future college expenses? Chances of an older adult (>age 60) dying in the next 20-30 years is a lot higher, so you can either use the death benefit or cash value in the account toward a child college expenses. And you're not locked down on a life insurance for life as would be the case if you're taking out a policy for yourself or on your child.

I've always thought it would be too expensive to do because COI on 60 year olds are costly, but apparently some agents think its still doable.
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Old 07-27-2017, 07:50 AM   #2
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Using Grandparents' Life Policy to Fund Future College Expenses? Re: Using Grandparents' Life Policy to Fund Future College Expenses?
Originally Posted by AX0903 View Post
Hi - Has any agents structured a college savings strategy by taking out a perm life policy (ie. last survivor-ship, SPIUL) on healthy grandparents to fund future college expenses? Chances of an older adult (>age 60) dying in the next 20-30 years is a lot higher, so you can either use the death benefit or cash value in the account toward a child college expenses. And you're not locked down on a life insurance for life as would be the case if you're taking out a policy for yourself or on your child.

I've always thought it would be too expensive to do because COI on 60 year olds are costly, but apparently some agents think its still doable.
Yep, I've seen it affectionately called GOLI - "grandparent owned life insurance". Grandparents are owners and payors, kids/grandkids are benes. Usually SIULs to keep COIs down with decent upside potetial. Older ages allow you to stuff more money into it. The GPs retain ownership in case the grandkids turn out crummy.
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