College Planning

Planning for college starts early for a child.

Planning for college is one of the most meaningful steps you can take for your child’s future. It’s not just about saving money—it’s about giving them the freedom to pursue their dreams without the constant stress of financial worry. Starting early helps you stay ahead, whether your child is interested in a university, trade school, or another path. Every contribution you make is a gift of opportunity, a way of saying, “I believe in you.” With a thoughtful college fund in place, you can focus less on rising tuition costs and more on celebrating the milestones that matter—watching your child grow, learn, and build the life they’ve always imagined.

Benefits of using life insurance for college:

A permanent policy, such as whole or universal life, allows you to accumulate cash value that can be borrowed from or withdrawn to cover not only educational expenses, but can help buy a car, or pay for other educational related expenses for your child. It’s like owning your own bank. Instead of borrowing money from a bank or lender, you can use the cash value in the policy.

Tax-deferred growth

The cash value portion of the policy grows tax-deferred over time.

Policy loans

You can take out a loan against the accumulated cash value. These loans are generally tax-free and do not require a credit check or strict repayment schedule. However, any outstanding loan balance will reduce the policy's death benefit.

Withdrawals

Some policies allow for tax-free withdrawals up to the amount you have paid in premiums.

Doesn't affect federal financial aid eligibility

The cash value in a life insurance policy is not considered an asset on the Free Application for Federal Student Aid (FAFSA). This can increase a student's eligibility for federal aid compared to other assets, like a 529 plan, which are included in the calculation.

Adaptable for other goals

Funds can be repurposed for other needs, such as supplemental retirement income, a down payment on a home, or other major life events.

Flexibility on how funds are used

Unlike a 529 plan, which has tax penalties for non-educational withdrawals, the cash value from a life insurance policy can be used for any purpose. This is useful if your child gets a scholarship, decides not to attend college, or if you need the money for another major expense.