AboutWillard R. Brumbaugh, LUTCF, CSFP Expertise I can handle questions concerning life insurance, it`s tax implications, how to determine what is appropriate, and how it fits in one`s estate and retirement planning.
Experience For 2 1/2 years I was an expert on AskMe.com, where for most of that time I was ranked #1. I have been a moderator (instructor) for the Life Underwriters Training Council. I have been licensed since 1969.
Organizations I belong to: National Association of Insurance and Financial Advisors - California
and the Inland Empire Estate Planning Council.
I hold the professional designation of Life Underwriters Training Council Fellow.
Question Our son will be a senior in highschool this coming fall. Early last fall we consulted with a financial/college solution company. After paying a fee, we were advised to roll our mortgage (11 yr's remaining), 1 car payment (3 yr's remaining), several CD's & savings bonds into a Bank On Yourself Lafayette life policy. This we were told will enable us to qualify for college financial aid as life insurance is not looked at by the gov't as an "investment". My husband is 54 & I am 50. This policy would be a 30 yr with the option to pay off the house in 9 yr's rather then 11. The numbers show we would be saving approx $700/month but paying the same amount out per month. The $700 is referred to as "tin-can". We were told this is our base year & the papers would need to be completed by or before August. Once the college tuition bills start rolling in we can draw on this account at any time. Are you familiar with this type of insurance? What are your thoughts? Thank you
Answer Dear Michelle,
I am familiar with the concepts involved in your query. They do work, but there are some issues not every agent is fully aware of. In order to properly advise you I would need to see the sales materials and a copy of the policy itself. If you value my perspective, you can fax the information to (888) 464-3229. You can reach me at (888) 792-2379 or my Verizon Cell (760) 963-2016.
By the way, I do not charge a fee. With the products our industry offers, such fees are not necessary. However, it may be that this consultant offered a specialty product that provided no compensation for him or her. I can only determine this by receiving the above information.
