The College First PlanSM
Save for college and beyond with The College First PlanSM
For as little as $5 a day, you can give your child or grandchild a head start on their college education and whatever comes next.
The College First PlanSM gives you an easy way to save for college with juvenile life insurance.
Choose the annual premium that fits your budget and insurance objectives with a tax-advantaged product from Penn Mutual, a trusted A+ rated (2nd highest out of 16 ratings by A.M. Best) insurance company with a 160 year history.1
The College First PlanSM can help make your child's college dreams come true.
For a newborn female, assuming annual premium payments of $3,650 for 18 years and illustrated annual growth rate of 8% and current crediting rates, which are not guaranteed. Refer to important disclosures below.*
Parents and grandparents choose The College First PlanSM because of:
Flexible payments - choose the annual premium that fits your budget and insurance objective.
Tax advantages - parents, as policyowners, can access cash value on a tax-free basis through withdrawals or loans. Loans and withdrawals will reduce the cash value and death benefit amounts.
Insurance for life - your child or grandchild can have permanent life insurance for life, regardless of future health or insurability.2
Options - unlike other plans, you do not need to use the savings to pay for college - the policy cash value can be used at any time, for any purpose, without penalty. For example, a down payment for a first home, or to start a business.
Guarantees - the insurance company guarantees a minimum interest rate of 2% each year.
What is The College First PlanSM?
The College First PlanSM is a strategy that utilizes a Penn Mutual indexed universal life insurance policy3 linked to the performance of the S&P 500®.4 Your policy cash value may increase when the Index has a positive return and you will receive a guaranteed annual interest rate if the Index goes down.
You receive a guaranteed annual interest rate of 2% plus additional interest linked to the performance of the S&P 500®. Based on the outlined proposal and a current cap of 12% and the guaranteed floor percentage of 2%, an annual premium of $3,650 would grow to $121,365* in 18 years when your child is ready for college. Remember that past performance is not indicative of future results and additional payment of premium may be necessary to avoid a policy lapse.
Why should I choose The College First PlanSM?
The College First PlanSM provides several advantages over other college savings plans. It offers guaranteed interest, flexible premiums and growth potential linked to the performance of the S&P 500® with less risk and volatility. Unlike other college savings plans, you can use the savings at any time, for any purpose and your insurance savings are generally sheltered from financial aid need analysis formulas. You will not be “penalized” for saving for college. Also, your child can have permanent insurance for life, regardless of future health or insurability.5
How does The College First PlanSM grow?
The value of The College First PlanSM is guaranteed to increase by a minimum interest rate of 2.0% every year regardless of the Index performance. Plus, in years when the S&P 500® increases additional interest will be credited to you annually up to a specified cap (currently 12%). When the S&P 500® decreases, the minimum interest rate of 2% provides downside protection. Purchasing The College First PlanSM does not involve actually purchasing securities or stock, so it is not the same as investing directly in the stock market.
How would The College First PlanSM work for my family?
If you are able to save $10 a day, your child’s policy may grow to $121,365* by age 18 to use towards college, or use some of the cash value to purchase a new home, start a business or for retirement.
How will I be able to afford college?
It is never too early to begin saving. Scholarships, loans, grants and financial aid may help, but rarely cover the rising cost of college. The College First PlanSM can be a great way to start saving for your child or grandchild's future.
Can I afford The College First PlanSM ?
If you are able to save as little as $5 a day you can give your child or grandchild a head start for college and whatever comes next. Our team of experienced professionals will help you select an annual premium that fits your budget and insurance objective. We will also create a detailed illustration of The College First PlanSM and show how your family can enjoy tax-advantaged savings, growth potential and permanent insurance coverage.
Call us today or click the link below for a no-obligation quote and application.
For a newborn female, assuming annual premium payments of $3,650 for 18 years and illustrated annual growth rate of 8% and current crediting rates, which are not guaranteed. Refer to important disclosures below.*
... the average annual cost (including tuition, fees, and room and board) of a four-year in-state public college was $16,140, and $36,993 at a four-year private college.
... the average increase in tuition and fees at public four-year colleges was 7.9% for in-state students and 6.0% for out-of-state students.
... nearly 1 in 5 full-time students at four-year public colleges and universities saw an increase in tuition and fees of 12.0% or more.
... the average student received less than 50% of college costs through grants and scholarships.
Source: College Board's Trends in College Pricing 2010
Source: College Board's Trends in College Pricing 2010
* The information provided above contains values and assumptions that are for illustrative purposes only, and are only valid when accompanied by the complete proposals, through which the above non-guaranteed assumptions are based. These assumptions assume that provided values will continue for all years shown. Actual results may be more or less favorable.
Please click $5/day or $10/day for copies of the full illustrative proposals that contain complete information about the policy described and the guaranteed values. Guarantees are based on the claims-paying ability of the insurer.
- The rating applies only to the insurer’s claims-paying ability and not to the products offered.
- Based on policy terms and conditions.
- Accumulation Builder II Indexed Universal Life Insurance policy – Policy Form IFL-07(S)(NY). Policy form numbers and features may vary by state.
- The S&P 500 Index is a market-weighted composite index of widely held stocks that provides a broad based measurement of changes in the stock market. One cannot invest directly in an index.
- Coverage eligibility subject to underwriting requirements.
IMPORTANT: This information is for educational purposes only and should not be considered specific financial, legal or tax advice. Depending on your individual situation, an indexed universal life insurance policy may not be appropriate. Always consult with a qualified financial representative to determine if an indexed life insurance policy is appropriate for you.
As provided values and assumptions are not guaranteed, there is no assurance that actual college costs will be met.
This material is not intended for use in the state of Oregon.
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