Is Life Insurance Necessary for College Students?
You may already know that life insurance is less expensive when you’re young and in good health, but does it make sense for your college student to have a life insurance policy? You may be surprised to learn that it may.
The most important factor in deciding whether or not a college student needs life insurance is to determine how they are paying for college. If your child will graduate with a degree and a large amount of student loans, it may make sense to secure a term life insurance policy to cover those long-term debts.
Keep in mind, government-backed student loans are forgiven if a student dies, but only one in six private lenders automatically forgive a loan when a student dies. It’s important to read the fine print on student loan documents to determine who, if anyone, will be responsible for repaying the loan if your child were to pass away unexpectedly.
If you borrowed against your home to pay for your child’s college education, you should consider purchasing a life insurance policy to cover that loan. Be sure to also think about credit card debt. If you have co-signed for a credit card for your child, you could be on the hook to pay any debt they may incur on the card.
Funeral Expenses and Medical Bills
No matter what age someone passes away at, even if they are young college student, they will incur final expenses for a funeral service. A college student may even have a large amount of medical bills.
The bright side is that purchasing a life insurance policy for someone so young should make it fairly inexpensive.
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