Juvenile Term/Coverdell Education
Juvenile Term Insurance
Juvenile Term Insurance is a low cost life insurance plan issued for children from ages 0 through 18 that provides protection to age 25. There are no cash values with this plan, but this plan is convertible to a permanent plan of insurance up to the age of 25.
There are two plan options.
- Single Premium of $150 = Face Amount of $10,000
- Single Premium of $300 = Face Amount of $20,000
Coverdell Education Savings
The minimum deposit to open a new Coverdell Education Savings Account with PFA has been reduced from $1,000 to just $300!
A Coverdell is a tax-advantaged investment account created to encourage savings for the purpose of paying the qualified education expenses of the designated beneficiary.
Contributions to the Coverdell ESA are not tax deductible, but amounts deposited in the account grow tax free until withdrawn. Generally withdrawals are free if they are used to educational purposes and are not more than the beneficiary’s qualified education expenses for the tax year.
You can make contributions to a Coverdell ESA and a Qualified Tuition Program (QTP) in the same year for the same beneficiary. The designated beneficiary can be changed to a member of the beneficiary’s family without tax consequences if at the time of the change the new beneficiary is under the age of 30.
Generally when the account is established, the designated beneficiary must be under age 18, but can be 18 or older if he or she is a special needs beneficiary.