Life insurance question for CSS Profile

Paying for College
1

<p>We are filling out CSS profile for my daughter, and need some advice on assets question. They ask for retirement/annuity funds, but nowhere do we see them ask about cash value life insurance. When they ask for "other investments" would life insurance be counted as an investment? It has a cash value, but is technically not an investment. Any advice greatly appreciated!</p>

2

<p>AFAIK, the cash value of life insurance is not counted by the CSS Profile.</p>

3

<p>From 2013-14 CSS/Financial Aid PROFILE FAQ’s and Glossary:</p>

<p>

</p>

<p><a href=“https://finaidonline.collegeboard.com/fin/VignetteServlet/VignetteServlet.srv?relativePath=/profile/pdfs/profile_faqs_glossary.pdf[/url]”>https://finaidonline.collegeboard.com/fin/VignetteServlet/VignetteServlet.srv?relativePath=/profile/pdfs/profile_faqs_glossary.pdf&lt;/a&gt;&lt;/p&gt;

4

<p>Good to know! Thanks so much for your posts.</p>

5

<p>A general reason they don’t include it is that cash value life insurance can return 0 on your investment and averages just a 2% return. Insurance should never be considered an investment.</p>

6

<p>The cash value is often accessible in the form of a loan, though, just like the equity in your house. Your house really isn’t an investment either, and yet house equity is often counted as an asset in whole or part.</p>

<p>And there are schools that ask for this information, although no one knows what they actually do with it.</p>