College planning!!

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PostPosted: Sat Dec 08, 2012 3:40 am   Post subject: College planning!!  

I am an insurance agent and licensed with the state of CA to do business. I am thrilled how so many families and individuals are unaware of their finance. Personal Financial Checkup (PFC) is a great way to bring your finances on the paper and take a look at it. You can start your child's college planning when he/she is 16 days old. This is a great opportunity to give your children a head start in their lives. You want your child attend the best schools and have a great career so get prepare for it.



Schools cost $$$$.



Contact me if you have any question regarding college planning, retirement,life insurance..

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PostPosted: Mon Dec 10, 2012 6:39 am   Post subject:   

Please don't learn to describe life insurance as "college planning". That's a misrepresentation you should have learned about in your prelicensing course.



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PostPosted: Mon Dec 10, 2012 7:00 am   Post subject:   

I never did mention college planning as a life insurance, and I am aware of the misrepresentation of the information. By college planning I didn't mean plan529. I meant a policy which is set as a fund or saving for college and education, the beauty of it is that life insurance is attached to it and it comes with it.


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PostPosted: Mon Dec 10, 2012 3:32 pm   Post subject:   

Quote:
the beauty of it is that life insurance is attached to it and it comes with it.


That's precisely the misrepresentation I had in mind. Life insurance isn't "attached to it" and doesn't "come with it" -- life insurance IS "it". If you truly believe anything else, you are delusional.



Can a person borrow money from a cash value policy? Of course (if it's there), and the life insurance companies have been saying that for decades. What is said and what is reality, however, are not always coincident.



A "529 plan", however, is a true college savings plan. Life insurance is something else entirely. And when you try to turn life insurance into something else, you and the insurance company are exposed to a civil suit down the line. When someone misrepresents that life insurance will pay for a child's college education, and 18-20 years later there's little or no money in that UL policy because it was never funded correctly, guess who just might have to come up with the cash to put that child through college -- it could be a former life agent who sold the policy in the first place.



Quote:
THIS IS A GREAT OPPORTUNITY TO GIVE YOUR CHILDREN A HEAD START IN THEIR LIVES.


With today's cost of a four-year private university education well in excess of a quarter-million dollars (and a state university education not even $100,000 less), do you have any idea how much money must be dumped into a UL policy for a newborn child to get there? A whole life policy would very likely be even more costly. What child (let alone multiple children) needs the seven- or eight-figure amount of life insurance that would be necessary to even remotely provide the means to accumulate $500,000+ in cash value it would take to pay for that college education 18 years from now without creating a MEC?



But it certainly is a great way for an insurance agent to make a fat first-year commission and possibly be able to set aside some money to send his children to college at the expense of the Joe Blue-Collars to whom he sells the child's life insurance.



Quote:
I never did mention college planning as a life insurance,
Liar! Liar! Pants on fire! Only your pants are down around your ankles and your butt is exposed to a civil suit.

Quote:
YOU CAN START YOUR CHILD'S COLLEGE PLANNING WHEN HE/SHE IS 16 DAYS OLD
is a clear reference to a child's life insurance policy, not the parent's. (About the same kind of lie that Obama tells when he says, "I am not a Muslim.") Truth be told, you don't even understand the concept correctly, because that newborn child may be eligible for life insurance at age 15 days. And the parent probably needs a lot more life insurance than the child does -- especially if you've done your snappy little "PFC".



I'm guessing your seven-digit CA Life-Only license number begins with "0G", or "0H". Sadly, you've fallen victim to the hype of your insurance company's UL marketing department, or you've learned this misrepresentation from other agents who really ought to know better. I doubt you even begin to understand how universal life insurance really works, and why it would never provide the kind of money a blue-collar family would need to fully fund their child's college education through a life insurance policy.



A fully funded 529 plan might not be enough either, but at least it may correctly be called a college savings plan.



I've seen it all too often, and it's one of the reasons why I help attorneys today to recover that money. Here's hoping I don't ever see your name on a civil complaint.



Learn all you can about life insurance and do it the right way.


_________________

CA-licensed Life & Disability Analyst. CA Insurance Lic #0596197. Also investigating insurance company abuses, and providing litigation support/expert witness services. Send me your questions, and I'll send you my answers.
MaxHerr
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MaxHerr
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Joined: 29 Nov 2009
Posts: 7888

Location: Pomona CA
107.59 Dollars($)

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