College costs are rising. Your plan should be ready.

COLLEGE COSTS ARE RISING. YOUR PLAN SHOULD BE READY.

For many families, paying for college is one of the largest financial commitments they will make. Waiting until the college years are approaching can leave fewer choices and less time to build a strategy.

A thoughtful college plan can combine savings, cash flow, financial aid, scholarships, and other resources-while keeping the family's broader financial picture in view.

This is where the type of asset matters. Under the current 2026-27 FAFSA instructions, qualified education benefits such as 529 college savings plans are included in the investment assets reported in applicable FAFSA calculations. By contrast, the FAFSA instructions specifically state that the value of life insurance is not included as an investment. That does not mean life insurance is invisible to every financial-aid formula, nor does it guarantee financial aid. It means the FAFSA treats these assets differently.

That distinction can be important when families are building a college strategy.

WHY CONSIDER IUL FOR COLLEGE PLANNING?

Indexed Universal Life (IUL) is first and foremost life insurance. When properly designed and funded, it may also build cash value that can potentially be accessed during the policyholder's lifetime.

For some families, that combination can make IUL worth exploring as one component of a broader college strategy:

Protection: The policy can provide a death benefit while the child is growing up.

Cash-value potential: Depending on the policy, funding, crediting method, charges, and performance, cash value may accumulate over time.

Access to policy value: Subject to the contract, policy loans and/or withdrawals may provide a source of funds for qualified education expenses.

FAFSA treatment: The FAFSA currently excludes the value of life insurance from the investment assets it asks applicants to report.

Flexibility: Unlike an education-only account, policy cash value may have uses beyond college, depending on the policy and the owner's objectives.

IUL should not be presented as a guaranteed college-funding solution or as a way to avoid financial-aid rules. It is a life insurance contract with cash-value features. Policy charges, funding levels, interest-crediting results, loan provisions, withdrawals, and other contract terms can materially affect policy performance.

Policy loans and withdrawals can reduce cash value and death benefits and may increase the risk of the policy terminating. If a policy lapses or is surrendered with outstanding loans, there can also be adverse tax consequences. These risks should be understood before using policy value for college expenses.

A 529 plan is specifically designed for qualified education savings and has important tax advantages and rules. IUL serves a different primary purpose: life insurance protection, with cash-value features that may provide additional flexibility.

For some families, a 529 may be appropriate. For others, IUL may be worth considering as part of a broader strategy. The right answer depends on the family's goals, time horizon, cash flow, protection needs, risk tolerance, existing assets, and overall financial plan.

How much could college realistically cost?

How much can the family comfortably contribute?

What other assets are already available?

How should those assets be positioned for the family's broader goals?

How might the assets be treated for financial-aid purposes?

What happens to the plan if the parent dies, becomes seriously ill, or financial circumstances change?

What happens if the child receives scholarships, chooses a different school, or does not attend college?

The goal is not simply to save for college. The goal is to prepare for college without losing sight of the family's financial future.

We start with education and your family's priorities. Then we explore available strategies, compare the trade-offs, and help you understand how each option fits into the bigger picture.

Understand first. Decide second.