Hi,
I have been trying to figure out if Mass Mutual's 10 pay life insurance is a good option for funding my kids' education. I have 2 young kids and am trying to plan for their education funds. I am not a big risk taker. Have already looked in plans like 529 and don't like them as much for various reasons. Thinking that if I invest in stocks / mutual funds - they may perform up and down and the day I need the money, if the market is down, it may not work in my favor. Also, when I consulted with a few people, I heard that any safe mutual fund would give you an annual return of around 7% average. Mass Mutual promises around 7% or more annually in their 10 pay policy. Also, when you take out the loan on this policy, their is no tax and it can be used on anything other than education if ever needed. When I tried to research the net, I don't see too many people invested in this for education purpose. I am wondering what is that I am not able to see through. Would I be making the right decision?
Please advise.
I have been trying to figure out if Mass Mutual's 10 pay life insurance is a good option for funding my kids' education. I have 2 young kids and am trying to plan for their education funds. I am not a big risk taker. Have already looked in plans like 529 and don't like them as much for various reasons. Thinking that if I invest in stocks / mutual funds - they may perform up and down and the day I need the money, if the market is down, it may not work in my favor. Also, when I consulted with a few people, I heard that any safe mutual fund would give you an annual return of around 7% average. Mass Mutual promises around 7% or more annually in their 10 pay policy. Also, when you take out the loan on this policy, their is no tax and it can be used on anything other than education if ever needed. When I tried to research the net, I don't see too many people invested in this for education purpose. I am wondering what is that I am not able to see through. Would I be making the right decision?
Please advise.