If the beneficiary dies or becomes incapacitated, however, no penalty will be assessed against the participant for non-qualified withdrawals. Similarly, if the beneficiary receives a scholarship, the participant may withdraw an amount equal to the scholarship without penalty. Finally, each mutual fund charges investment management fees and other expenses which vary from fund to fund. Parents who start early and regularly invest should be successful in having enough assets to fund their children's education costs when the time comes. The premature death of one or both parents could seriously disrupt an education funding program.
Life insurance is the perfect solution.
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