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Personal Finance

Using Life Insurance for College Savings? Proceed With Caution

These policies are marketed as a safe way to invest for college, but beware the fine print.

Note: This article is part of Morningstar's October 2013 College-Savings Boot Camp special report. An earlier version of this article appeared Feb. 2.

For many families, any discussion about saving for college starts and ends with 529 college-savings plans, tax-advantaged accounts designed for just that purpose. But in some cases families are using a less well-known, and somewhat controversial, approach: cash-value life insurance.