One way to supplement a college funding strategy is with Cash Value Life Insurance that can be used for a number of purposes. Parents,
grandparents, or other family members may gift premiums (to the child or owner of the policy, for example), and the cash
value build-up inside the policy is tax deferred during the
accumulation period. When the time for college arrives, cash
may be withdrawn from the policy (generally on a tax-free basis up to
the amount of the premiums paid), or the cash values can be borrowed
from the policy. In most cases, loans or withdrawals will reduce the
policy's cash value and death benefit. If the policy is surrendered or
lapses, taxes may be due.