We are proud to offer a new product that can provide tax-advantaged college savings and guaranteed insurance coverage for life.
New York, NY (PRWEB) October 05, 2011
New Amsterdam Life proudly joins more than 40 states that made September "College Savings Month" by launching The College First Plan(SM) – an innovative new way to save for college using juvenile life insurance.
The College First Plan is an easy and affordable way for a family to plan ahead for college and beyond. The College First Plan utilizes a Penn Mutual indexed universal life insurance policy linked to the performance of the S&P 500® Index. The policy cash value can increase when the S&P 500® Index has a positive return and offers a guaranteed annual interest rate of 2% if the Index goes down. Parents can access cash value on a tax-free basis through withdrawals or loans, or allow the cash value to continue to grow for future financial goals, such as a new home, a business or retirement.
James Garfinkel, President of New Amsterdam Life, urges parents to start saving for college as early as possible. “Parents should start thinking about college savings as soon as a child is born. Every parent wants to help their child avoid the student debt spiral,” explains Mr. Garfinkel, referring to the thousands of recent college graduates burdened with massive student loan debt and diminished employment prospects, “luckily, there are college savings strategies that can help parents meet the rising cost of college.” Between 1999–2000 and 2009–10, prices for undergraduate tuition, room, and board at public institutions rose 37 percent, and prices at private institutions rose 25 percent, after adjustment for inflation, according to new data from the National Center for Education Statistics.
The College First Plan 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, the policy owner can use the savings at any time, for any purpose, without penalty. Insurance savings are generally sheltered from federal financial aid analysis formulas. Also, parents and grandparents are able to secure permanent insurance for their children, regardless of future health or insurability.
"We are proud to offer a new product that can provide tax-advantaged college savings and guaranteed insurance coverage for life, starting at only five dollars a day," said Mr. Garfinkel. "We are excited to help families who want to give their child or grandchild a head start on their college education and a lifetime of financial security."
About New Amsterdam Life
New Amsterdam Life is the leading juvenile life insurance agency in the United States offering a comprehensive portfolio of insurance products from the top rated insurance companies in the United States (A+ or higher by A.M. Best). As an independent agency, New Amsterdam Life is able to help clients select the best insurance products at the lowest price.