Both Variable and Affordable
With a variable life insurance policy, the parent chooses the types of investments that fit his or her risk profile and time frame. When a policy is purchased to fund a child's college education, the time frame is determined by the number of years before the child is expected to enter college. The return is based on the performance of the investments chosen by the policy owner, who can alter the investment mix as market conditions change. To reduce risk, policy owners generally diversify assets among several investment options.