The idea is you buy a policy on your kid and then they've got life insurance down the road in the event of their premature death. When they make it to college age, there's this wonderful tax loophole that allows you to borrow from the policy's cash value to pay for college.
But Smart Money magazine and I are in agreement: The idea stinks and there's a much better way to get the job done. It's called a 529 plan and it has definite benefits over a life insurance policy to pay for college.
Ken Tumin5,337 posts since Nov 29, 2009 Rep Points: 121,261