Permanent life insurance, such as whole life or indexed universal life, builds cash value over time. This cash value can be accessed tax-free through policy loans and withdrawals—and used to help pay for tuition, room and board, or other education-related expenses.

One of the biggest advantages of using life insurance for college planning is that the cash value isn’t counted against you in the FAFSA formula for federal student aid. That means families can maintain eligibility for need-based aid while still building a tax-advantaged pool of money they control.

In contrast to a 529 plan, life insurance offers flexibility. You’re not limited to educational expenses, and if your child doesn’t go to college, the funds can still be used for other purposes—or left in the policy to support retirement or legacy goals. It’s also a great backup if financial aid doesn’t come through.

At Diversified Insurance Brokers, we help families explore life insurance strategies that align with college funding needs, financial aid goals, and long-term protection. Our advisors understand how to structure policies properly—so you get maximum benefits without overfunding or unintended tax consequences.

👉 Visit our About Us page here to learn how our family-run firm supports yours.

Contact Us Today:

Want to explore life insurance as a flexible college savings option?
📞 Call us at 770-662-8510
📅 Schedule a free consultation with Jarad
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