Why College Students Seriously Need To Consider Buying Life Insurance
Posted in Life Insurance Tips last updated on May 29, 2019If your parent is co-signing big student loans for you, remind them to consider buying a life insurance policy while they are at it.
If you have a student loan; you should consider purchasing life insurance to cover your loan and protect your parents.
According to the U.S. Almanac of Higher Education there are on average 20 million students who attend college each year.
Of these student there are 12 million students who will borrow money to pay for their education.
Many of these student loans are co-signed by their parents.
The average cost of a Bachelor’s degree is around $45,000 per year which works out to $180,000 in total.
The average 4 year student carries at least between $25,000 – $29,000 in student loans when they graduate and some student loans are in the 6 figure bracket.[i] Those students who continue on to graduate school, especially law and medical school, see their debt balloon substantially.
What happens to these loans should a student die either while still going to school or not long after they graduate?
These loans are still outstanding debts that might have to be paid, even after the student dies. Federal student loans are forgiven by the lender when a borrower dies, but private lenders aren’t required to provide any such relief. Another consideration is that student loans are rarely discharged in bankruptcy.
Life insurance is cheapest while you are young and would help your parents survive financially if tragedy strikes.
To compare rates from the nation’s leading life insurance companies right now – use the Instant Life Insurance Calculator at the right.
Reasons Why Students and Parents Should Consider Buying Life Insurance
If you fall into one of the following situations:
- Student
- Parent of a student, or
- Student who has a Family
And, if you are borrowing money to pay for your education, or your loan has been co-signed by your parents, or you have a family to support, you should seriously consider buying a life insurance policy so that the survivors are not left financially burdened by your debt.
As a parent, you can also buy a policy for your children when they are students, or when they graduate.
Many young people don’t think about dying prematurely in an accident or being stricken with a terminal disease, but it does happen and it can happen to you.
Should you die unexpectedly before the loan is paid, then the debt will fall upon the survivors, such as your parents, to pay for the loan especially if they have co-signed on the loan.
Can your parents afford to pay for your student loan debt, without having life insurance if you were to die unexpectedly now or a few years from now?
Or, will your debts end up costing your parents to become financially destitute?
Your student loans may cause huge problems for your parents later.
If you’re a mature student with a family, you have to consider what will happen to your family should you die unexpectedly. How will they cope with your debts? How will they continue to survive financially with no income and looming debt to pay back?
A life insurance policy is the perfect choice and a practical solution to financially protect yourself and your family should something happen to you.
A life insurance policy is also very inexpensive when you are young as you can see from the sample quotes we have provided below.
Reasons Why You Should Get Life Insurance At A Younger Age
Life insurance premiums are based on age and health. Premiums are lowest when you are young and healthy. Since there is a good chance you will have a family depending on you to protect them financially one day – now is a great time to lock in the lowest rates on your life insurance.
Life insurance becomes increasingly more expensive as you age. And, as you age you become more prone to a variety of health issues such obesity, high blood pressure, heart disease and diabetes just to name a few.
By buying a policy when you are younger, you will continue to remain insured even if your health declines. If your health does decline and you have no life insurance, you may no longer be able to qualify for an insurance policy. If you already have a policy in place, then this is no longer a concern.
If you purchase a term life insurance policy when you are young and do become ill, the policy can be converted into a permanent policy and will cover you for life, regardless of any health challenges that arise.
Life insurance can also be used as a financial vehicle to protect your money from tax and market risks.
Compare Term Life Insurance Rates for Students and Parents
The most popular and least expensive type of life insurance is term life insurance. It pays out a death benefit that is usually tax-free if you pass prematurely.
To appreciate how affordable life insurance is for young people, please review the sample quotes provide below.
Term life insurance for an 18 Year Old Male “Preferred Plus – Non Tobacco” Health Class
Monthly Rates:
| $100,000 | $250,000 | $500,000 | |
| 10 Year Term | $7.31 | $9.83 | $14.31 |
| 15 Year Term | $7.92 | $10.88 | $16.05 |
| 20 Year Term | $9.50 | $13.45 | $20.45 |
Term life insurance for an 18 Year Old Female “Preferred Plus – Non Tobacco” Health Class
Monthly Rates:
| $100,000 | $250,000 | $500,000 | |
| 10 Year Term | $7.06 | $8.95 | $12.62 |
| 15 Year Term | $7.70 | $10.25 | $15.20 |
| 20 Year Term | $8.66 | $12.20 | $17.60 |
Term life insurance for a 30 Year Old Male “Preferred Plus – Non Tobacco” Health Class
Monthly Rates:
| $100,000 | $250,000 | $500,000 | |
| 10 Year Term | $7.32 | $9.83 | $14.35 |
| 15 Year Term | $8.02 | $10.88 | $16.05 |
| 20 Year Term | $9.50 | $13.56 | $21.10 |
Term life insurance for a 30 Year Old Female “Preferred Plus – Non Tobacco” Health Class
Monthly Rates:
| $100,000 | $250,000 | $500,000 | |
| 10 Year Term | $7.06 | $8.95 | $12.62 |
| 15 Year Term | $7.79 | $10.45 | $15.20 |
| 20 Year Term | $8.66 | $12.25 | $18.55 |
To compare rates from the nation’s leading life insurance companies for your exact age – please use the Instant Life Insurance Quote calculator to the right.
Want Life Insurance Fast Without an Exam?
A regular life insurance policy takes an average of 6 weeks to receive from the time you submit your life insurance application. However, since we live in the must-have-it-now society, we have a solution for you. If you are in medium to great health and want up to $500,000 of life insurance with no exam, we offer several options of $500,000 life insurance with no medical exam. It’s the fastest and easiest way to purchase life insurance. If you are not in a rush and don’t mind a simple life insurance exam, then you can compare rates from the nation’s leading companies by using the instant life insurance quote calculator on this page.
Where to Find Life Insurance for Students and Parents with College Loans
Reasons why students with student loans need life insurance.
Finding an affordable life insurance for students and their parents is a lot easier and less expensive when you go through an independent agent such as you find here at Abrams Insurance Solutions.
We compare rates from dozens of A or A+ rated life insurance companies. Think of us as your personal life insurance shopper to help you find the lowest rate for your policy.
If you have any medical conditions or are a smoker, then call 858-703-6178 or email us using the Ask a Question tab on the right to discuss your situation. We know how each life insurance company rates a particular health condition and will advise which to use for you to get an affordable rate for your life insurance.
Call us if you have questions or need some advice at 858-703-6178, so we can start protecting you and your loan co-signer with life insurance today.
[i] http://rt.com/usa/student-loan-debts-top-trillion-957/
