Life Insurance for the Self-Employed Help! My child is two years away from college and we haven’t saved much. What should we do? Why purchase life insurance? How can we save for retirement and our child’s college education at the same time? Business Use of Life Insurance: Corporate-Owned Life Insurance U.S. Savings Bonds for Education Savings Using the Reasonableness Test in Creating Your Budget Taxation of Life Insurance Dividends College Saving Options The death benefit from insurance on my life will be paid to an irrevocable life insurance trust (ILIT). What if those funds are needed to pay my estate taxes?