Before I get started, did you see my hot-list newsletter last week titled: POM Planning Brings on New Manager (28% average ROR going back to 2007)? If not, click on the following link to learn more:
Anyone looking to marketing websites, IMOs, or insurance companies for the “truth” when it comes to much of anything should know better.
I got an email today from Producer’s Web asking me if I wanted a FREE download of a “report” that was created to tell readers if Whole Life (WL) insurance is a better college savings tool than a 529 Plan.
I, of course, already know the answer to this because I created some time ago the definitive white paper answering this very question.
To download my 10-page college planning white paper (which has several real world examples), click on the following link:
To watch a webinar on recording where we explain the pros and cons and the real math behind using cash value life as a college funding tool, click on the following link:
Everything that’s wrong with the insurance industry
Putting forth a “report” that has NO financial detail comparing 529 plans to WL insurance is an outrage and is everything that’s wrong with the insurance industry.
If you received the same ad offering a free “report” comparing WL to 529 Plans, don’t waste your time downloading it. There is absolutely NO financial information in the report. It simply gives the typical talking points indicating that life insurance for some schools is not a countable asset in the aid formula, that money can be removed tax-free if not used for college expenses, that there is no investment risk with WL, and that WL self-completes if a parent dies before the child gets through college.
What the “report” doesn’t do is show real world examples of the finances of using WL as a college savings tools. The reason that is omitted, in my opinion, is because no one in their right mind who looked at intellectually honest numbers would use WL as college funding vehicle (IUL can work if it is massively overfunded for retirement as well as college planning).
What makes me most sick about this
The worst thing about this kind of marketing is that the people who will be harmed by it will be parents and students. Insurance agents who sell products in a manner that is not in their client’s best interest in the college planning space will rarely have to face the consequences of their actions. They will make their commissions and will most likely not be around when the parents realize they were sold a bill of goods.
Do yourself a favor and steer clear of IMOs pushing WL or any kind of life insurance for college planning.
Roccy DeFrancesco, JD
Founder, The Wealth Preservation Institute
144 Grand Blvd
Benton Harbor, MI 49022