How Life Insurance Can Help Pay for College
Life insurance can be used to pay for college in a number of ways. Here are three of the most common:
- Insuring the life of a parent or breadwinner. This can provide a financial cushion for your family if the primary income earner dies. The proceeds from the life insurance policy can then be used to pay for college, as well as other expenses.
- Purchasing a permanent life insurance policy on a child. This type of policy builds cash value over time, which can be used to pay for college.
- Taking out a loan against the cash value of a life insurance policy. This can be a good option if you need money for college right away, but don’t want to cash out the policy altogether.
