life insurance for college students

Why Life Insurance for College Students is a Good Idea

College is a formative period in a person’s life. It’s a time when a person is encouraged to push their intellectual, social and emotional boundaries unlike they’ve ever done before. This period can also be a risky time, however. An unfamiliar environment, a jam-packed schedule, frequent alcohol consumption and more, can create an uncertain situation. And while there’s no use in trying to change societal tradition, the risk of these activities, must be acknowledged.

Taking out a life insurance policy on a college student may seem overly preemptive and presumptuous, which, in addition to the thought of a child’s death, is why most parents don’t do it. But in many cases, a student loan will not be discharged upon the death of the borrower, and will revert to the co-signer. For grieving families, the extra financial burden not only becomes a reminder of their child’s potential, it could drastically alter the livelihood of the bereft.

Today, the average student loan has a $30,000 price tag. A basic life insurance plan with $50,000 in coverage costs about $5 a month. Over 10 years, this would only come out to be about $600. In the tragic event a college student’s death, the policy would cover the loan and provide for the family as well. It’s a small price to pay for a grieving family to avoid falling into financial destitution.

Sometimes, the financial institution providing the student loan will provide relief in the event of a death. Large institutions like Wells Fargo, Sallie Mae and Discover will absolve a debt, rendering a life insurance policy for a college student unnecessary. Federal student loans are also absolved upon a student’s death. Many private lenders, on the other hand, will revert to the co-signer. Student loan debt also cannot be discharged through bankruptcy.

But there are other reasons for a college student to take out a life insurance policy. It can show a great deal of foresight on the student’s part, for example, since policies are at their most affordable when a person is younger and healthiest. In other words, healthy students investing in life insurance now will be locked into a favorable rate, whereas those who wait longer will pay more down the road.

College students starting their own families should also consider investing in life insurance. According to a 2011 study conducted by the National Center for Education Statistics, 18% of undergrads are married, and many of these students are having children. Since the financial situation of young families is often already fraught with stress and hardship, the loss of one income could be disastrous. A life insurance policy would cover debt and provide for a young family after the untimely loss of a breadwinner.

Get a Life Insurance Quote Today

There are affordable life insurance policies available, even if you’re a college student on a strict budget. These policies can protect your family from becoming burdened with your financial responsibilities. Click here to instantly compare life insurance quotes online.