Why do you usually favor 529's?I'm a proponent of permanent LI, but usually favor 529 plans. PL can fit in the right situation, but in practice it seems to be more of a niche solution for college funding.
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Why do you usually favor 529's?I'm a proponent of permanent LI, but usually favor 529 plans. PL can fit in the right situation, but in practice it seems to be more of a niche solution for college funding.
Trying to make a case for either position in a vacuum is not how I would do it. The college funding conversation fits inside a broader conversation, and the client's ultimate decision on how to pay for college is made in light of all their other financial objectives. There are lists of "what ifs" that could make either position look right or wrong.One thing to consider. If my financial situation changes, I can always stop funding the 529 and still have use of what I have contributed. If I stop funding the PI, odds are I won't have much cash value to use, and the policy might even lapse before college age.
Trying to make a case for either position in a vacuum is not how I would do it. The college funding conversation fits inside a broader conversation, and the client's ultimate decision on how to pay for college is made in light of all their other financial objectives. There are lists of "what ifs" that could make either position look right or wrong.
It's what VolAgent said. Here is a link that was accurate as of 2007: State Exemption Chart on Creditor-Debtor Issues
Some assume that annuities also enjoy the same preferred tratment as life insurance, but that's not necessarily true. For example, in NC annuities are not specifically mentioned in the NC General Statutes, so in absence of clear written exemption, you must assume they are not protected. Check your State's law. Florida, Texas, and Oklahoma are very liberal in their treatment.
It's where YOU live.Crap, wouldn't you know Maine would be all in Red....Intersting reading in the bottom about conflicting state statutes...If you have your IRA account held in a different state...With a 48 or 50 state life insurance company is your policy considered to be held in your state or the state the company is domiciled in?
Yep. The main thing is to know how the options work, and help the client come to their own concluson.Actually, I'm just playing devil's advocate for Greg.
I personally like to use a mix. Some 529 and some PI. Gives you more options and ultimately their are different animals.
Interesting. I never use UL or any variation of UL. I always use maximum funded (at the MEC limit) WL (with PUA rider) for college funding. You must know something I don't. I'm here to learn. Details please.Also, on an overfunded UL/IUL the risk of it lapsing because of financial hardship is greatly reduced.
This is why I never use WL for college funding.
(yeah, I know that I will get berated for that comment, but I stand by it!!!!)