Using MEC to shelter assets, pay for college

privateID
Fri, 06 Aug 2021 18:18:35 +0000

I am in no way endorsing the insurance idea. Just want to clarify one point about it. I used to have life insurance through my work. With that policy I had the ability to save through some kind of cash account that was considered a MEC. I can put money in and out with no restrictions. There was a max I can put into it to keep it a MEC. It never paid less than 4% interest. And, as I found out at the time, money I kept there did not count for financial aid. As it turned out, my son did go to a meets full need school and having money in there influenced things. So, I had the life insurance policy and the cash account in place before FA was even a consideration. But, in the end, it did help get a little more aid. Hard to know exactly how much, but not much more as I didn’t have a ton of money in there.