A dividend-paying whole life insurance policy with a mutual life insurance carrier can be an effective tool for saving for children’s university or college expenses. As premiums are paid, the policy’s cash value grows on a tax-deferred basis, and dividends, if declared, further enhance this growth. Over time, this cash value can be accessed through tax-free loans or withdrawals, providing liquidity when it’s time to pay for education. Unlike traditional savings accounts, the cash value continues to grow even while loans are taken out, and the policy remains in force. Additionally, the policy provides a death benefit, offering financial security for the family. This approach allows parents to build a flexible, tax-efficient college savings plan while maintaining long-term financial benefits.