Permanent Life Insurance
While a primary benefit of life insurance is to assist your family financially if you should die, it also can be an excellent tool for college funding. Funding a college savings account hinges on the ability to earn income. If something should happen to you, a permanent life insurance contract can help ensure that goals like education can be met, even if the unthinkable happens. In addition, permanent life insurance contracts accumulate cash value that can be used during your lifetime.1
How They Work
The proceeds from permanent life insurance contracts can be used to pay college costs. When your child begins college you can start tapping into the cash value to pay for education expenses.1How Can the Money Be Used?
There is no requirement that proceeds be used for education expenses. Funds can be used for any purpose the contract owner desires.1Tax Savings
- Income tax-deferred growth of the accumulated cash value of the contract.
- Income tax-free death benefits.
- Income tax-free loans.
There are three different types of permanent life insurance:
- Whole life gives you guaranteed death benefits, guaranteed level premiums, and guaranteed cash values that increase each year. The guarantees are contingent on all premiums being paid and no loans or changes being made to the contract.2
- Universal life allows you to increase or decrease your death benefit and your premium payments to the extent allowed by law, and subject to any limitations in the contract. Cash value in a universal life contract gets interest at a current rate, with a minimum rate stated in the contract.
- Variable universal life allows you to direct how the cash is invested among the underlying subaccounts offered, but the investment performance has no guarantees. Please refer to the prospectus for more complete information.
Contact a Thrivent Financial representative to find the right permanent life insurance contract for you.
1 Loans and withdrawals will decrease your death benefit and the cash value available to pay insurance costs. Surrenders may generate an income tax liability and may be subject to a surrender charge. A significant taxable event can occur if a contract lapse with an outstanding loan. Loaned values may be credited at a lower rate than unloaned values.
2 Guarantees are based on the claims-paying ability and financial strength of Thrivent Financial for Lutherans.
Thrivent Financial for Lutherans and its respective associates and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative, and as appropriate your attorney and/or tax professional for additional information.
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