FAFSA Online Secret:
Ensure You Are Insured

You've heard insurance companies talk about how whole life insurance is a great investment, and for the most part, they're wrong, unless you've got 40 or 50 years for your investment to turn around. We've talked on our other sites about how whole life insurance has a poor rate of return on investment compared to other investments. There is, however, one area where whole life insurance is a better investment than other investments - the FAFSA.

Yes, it's true, line 44 of the 2007 FAFSA asks you to detail the worth of your investments. However, it excludes:

• The mortgage on your principal residence
• Retirement plans
• IRAs
• Prepaid tuition plans
• The value of life insurance

A whole life insurance plan is essentially invisible to the federal financial aid process. The downside to whole life insurance? It's expensive. It does, however, provide a modest return on investment in the very, very long term (think 20 - 30 years) and gives you coverage in case bad things happen. Investing in the whole life insurance plan gives you another place to sink some money away from the prying eyes of the financial aid process.

Best Advice

Look around for decent insurance that works with what you can afford.

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