Helping Families Afford College: Financial Tools and 1891 Member Benefits
August 22, 2025
It’s back-to-school season again, and for many parents, that means college feels one step closer. With inflation rising and tuition at all-time highs, it’s a good time to take another look at your college savings strategy — including your life insurance.
Can life insurance really help pay for college? Many parents are surprised that the answer is yes. But life insurance is so much more than just protection from the unexpected. It’s also a strategic savings vehicle.
How Life Insurance Can Support Education Goals
Unlike term life insurance, which doesn’t build cash value, whole life insurance grows over time. Once enough value has accumulated, policyholders can withdraw or borrow against it to pay for education expenses like tuition, books, and housing. Any loan taken from the policy reduces the available death benefit if not repaid, but many families appreciate the flexibility this approach provides.
Many families also rely on 529 plans to save for college. These accounts grow tax-deferred, and withdrawals are tax-free when used for qualified education expenses. If the account owner passes away, the beneficiary still receives the money — but only what’s already in the account.
That’s why some families choose to pair a 529 plan with whole life insurance. A 529 offers tax advantages for education savings; meanwhile, life insurance adds both cash value you can use during your lifetime and a death benefit that ensures the child’s education is protected even if the unexpected happens. Additionally, if your child decides not to attend college, the money you invested in life insurance isn’t locked inside an education-only account.
To maximize effectiveness, it’s best to allow at least 10 years of growth inside both a life insurance policy and a 529 plan when they are being used to support future education goals. Together, they can create a diversified, flexible, and tax-advantaged strategy that adapts to a family’s needs.
Member Benefits That Make a Difference
1891 Financial Life members receive unique fraternal benefits like scholarships and grant opportunities. These college assistance programs reflect our commitment to education and family support.
We offer yearly scholarships for college, master’s programs, and occupational training in amounts ranging from $500 to $4,000 per year. For more information, contact 1891 at 800-344-6273 Option 6 or email your questions to outreach@1891FinancialLife.com.
Building a College Savings Strategy That Fits Your Family
Combining life insurance, 529 plans, and scholarships is a smart and diverse way to prepare for the impending expenses of college.
This strategy works best if you can start saving early, giving your money time to grow. Remember, even small contributions make a meaningful difference.
It’s also a good idea to revisit your life insurance plan regularly to make sure it supports your financial goals. Review whether the coverage amount, cost of premiums, and access to cash continue to align with your family’s needs.
For help using your policy’s cash value strategically, talk with an 1891 advisor for information on repayment obligations, growth expectations, tax implications, and more.
Invest in Their Future — And Yours
Combining life insurance with member benefits from 1891 will support your life today and for generations to come. Our agents can help guide you through your options and build a strategic financial plan that balances protection and opportunity.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to learn how life insurance and member benefits can make college more affordable for your family.
About 1891 Financial Life
Our culture is about looking out — for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. In 2023, 1891 Financial Life was listed by Forbes as one of “The World’s Best Life Insurance Companies.”
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.