Life Made Simple: Protecting Your Kids’ Education | Allstate Insurance


Megan:
He looks like a little lawyer. Eric:
He’s definitely got a Nobel Peace Prize, or two, in him. Megan:
Maybe… a renowned physicist…? Megan:
School is going to be expensive. Eric:
Yeah… Megan:
How’s this baby going to afford college if something happens to one of us… school
is not cheap. Eric:
Undergrad loans, Graduate loans… Ph.D loans. Megan:
We can’t let our little Nobel Peace prize-winning PhD astronaut start his career in debt. Eric:
Don’t worry, Daddy got a solution. he obviously did not get his Ph.D.
brain from you. Junior’s education is worth more than a
gamble. That dream has to be protected— especially if Eric should pass away before
he and Megan can save enough to pay for it like they want to. Life insurance can provide
the protection their kids deserve. For example, since they have a newborn and
a 3–year-old, they could buy a 20-year Term life insurance policy that would pay a death
benefit of $400,000. This can help ensure both kids’ have money
for a college education. Term life insurance is the least expensive
coverage Eric can buy because it provides shorter-term protection. As an alternative, Permanent insurance, like
whole life or universal life insurance, can guarantee protection for his entire lifetime
and also build cash value that can be borrowed or withdrawn. So they can help protect their kids’ dreams
for college if Eric dies, while providing access to cash value that can help pay for
college if he doesn’t. Eric:
Ok, maybe life insurance is a better idea.

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