Though not the most obvious approach, some life insurance policies can help protect your family in case of an unexpected death while at the same time offering a cash payout. If you purchase a certain type of whole life policy for yourself, with your child as a beneficiary, you may be able to use the cash value of the policy when your child turns 18. A whole life policy can be cashed in and used to pay college tuition. If you’ve been paying on it for 18 years, the savings portion will likely have grown and will be a nice little sum for your child. One of the benefits of whole life is that the premiums are often fixed - meaning that your payments will be the same.
Be sure to consult an independent insurance agent to ensure that the policy has a cash value or savings component.
The best way to save for college is to start doing it as soon as your little one enters the world.
While it may be difficult to know what the cost of tuition will be when your child is ready to enter college, if you start saving now, there will be enough to get started.
Would you like to talk with an independent insurance agent about a Whole Life policy that might help you save for your child’s college tuition? Contact a Give Your Kid a Million agency partner near you for a free quote.