The Latest Pitch to College Savers More firms are marketing life insurance as a way to help parents save for college. But is it a good deal?

Annamaria Andriotis:

For the many parents who are reeling from recent losses to their college-savings plans, insurers are pitching another option they claim can help: life insurance.

Last week, Massachusetts Mutual Life Insurance Company launched a "Kids Take Charge" marketing campaign that promotes life insurance as a way to pay for college. Allianz Life Insurance Company of North America will roll out its latest campaign on life insurance as a college savings vehicle next month. Both firms join Illinois-based insurer Mutual Trust Financial Group, which this year has been promoting college savings as one of the main reasons to buy life insurance. In addition, insurance companies like National Life Group and Aviva USA have been encouraging their agents to talk about college planning and insurance with their clients.

While insurance companies have long touted whole life and universal polices as a back door way to finance college, experts say rarely have so many companies made such targeted pitches directly to parents. Why now? College savings plans have been hit hard by market losses over the past few months and low interest rates, say financial advisers, while tuition costs continue their steady rise. Insurers, they say, see a ready market in panicked parents.

Posted by Jim Zellmer at October 28, 2011 2:38 AM
Subscribe to this site via RSS/Atom: Newsletter signup | Send us your ideas