Take Out a Permanent Life Insurance Policy
It might sound odd, but actually there are a lot of higher net worth families that take out permanent life insurance policies in order to help their children pay for university. Well, to be honest, these types of policies may in fact help with a variety of goals since they provide tax-advantaged savings.
This type of policy allows for money from your premium to be split between going into a death benefit and going into a tax-deferred saving account. You can access the money for any reason whenever you want, meaning you can use it for educational purposes without worrying about some of the restrictions other plans have put into place.
Another huge benefit is the fact that the policy will not count as an asset when looking for financial aid from a college.
You’ll have to think twice about doing this and it might be a good idea to ask a financial adviser to go over the plan with you. Some of the drawbacks include upfront and recurring fees that will make you wonder if a permanent life insurance plan is at all worth it.
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