More financial advisers are suggesting that middle-income clients use life insurance that carries a cash balance to pay for their children's college education, according to a survey by Financial Research. Life insurance offers tax advantages over 529 savings plans, and the assets aren't included when determining financial aid. Critics of the practice say the policies are too expensive and are also commission-based. Morningstar advises a "complex cost-benefit analysis" to make sure the strategy makes sense.
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