I was just thinking if I could transfer my 2 boys universal life insurance policy funds to a 529 plan for college? the universal policy was to help save money for college. I am in a financial burden and would like to make sure that there are funds for college.
Can anyone suggest or made any recommendations? Thank you to all in advance.
You can probably "cash out" the insurance and put it in the 529. Don't be surprised at the cash value of the universal (whole) life policy though....it might be just a few hundred dollars if you're lucky! Call your life ins agent and see what the cash value is. It won't be for the insurance amount. Not even close.
Talk to the agent who sold you the Universal Life policy if possible. It is possible to open up a 529 plan with funds from the UL policy. Whether or not this is the only possibility or the best depends on many situations in your life.
It is more important to take care of family and your own retirement than it is to fund your child's college fund. As parents we all want to do what we can to ensure that our kids go to college, but there are times when that goal is a luxury. I know that may sound a little harsh, but it's good financial advice.
I recommend that you talk with your agent. If it's possible to transfer the money then talk with the administrator of the plan before making a decision. Or do it vice versa. I doubt that any of us, unless we're one or the other of those, would know the answer.
