First, what do you know about life insurance for students?
Well, life is full of difficulties and we can never know what life has planned for tomorrow.
And students are no different in that.
Even if you are a student, it doesn’t mean you are immune to life’s undesirable events.
Life insurance protects you and your loved ones from life’s uncertainties.
In the event of an unfortunate event, the insurer will help with a lump sum that will help the family take care of financial debts and other responsibilities.
Losing a child can be a heartbreaking experience for any parent, and the accumulated amount of money can be very helpful in such situations.
Parents or loved ones can use this amount to take care of funeral expenses, outstanding personal loans or education loans, and other essential expenses.
In this article, we explain how important life insurance is for students and what benefits different insurers offer.
The Available Options of Life Insurance for Students
Insurers develop beneficial life insurance policies for different types of customers, and college students are no different.
Typically, students enjoy their college years more than protection from unfortunate incidents.
For once, it may seem irrelevant to college students, but when you get down to the details, you’ll find that life insurance is a smart buy.
However, most people do not realize the need for it in the early stages of their lives and therefore cannot buy one for them. Such policies offer students a useful way to take care of their studies and other essential expenses.
Several companies offer online life insurance plans at affordable prices.
You are just asked to fill an online website for the official website of insurers or an insurance portal with several providers.
Insurance agents from different companies will reach you with the best insurance quotes as per your requirements.
They will patiently listen to your queries, clearly explain the entire plan available, and suggest the most suitable one for you.
By comparing the different plans in terms of their coverage and benefits, you can choose a plan that offers the maximum coverage at the best price.
It is also considered that students have a longer life expectancy than older buyers and live longer.
Therefore, insurance policies offer a cheaper insurance plan to attract younger buyers. If you are not married and are a student and are thinking about buying a life insurance plan, you may get a great discount on your insurance plan and get a premium that is significantly cheaper than someone who is married or works in a company.
Buying life insurance early in life can also help your parents catch their breath when they find relief, as they won’t have to think much about the uncertainty of the future.
Reasons to Buy Life Insurance for Students
Several reasons may compel a student to purchase life insurance for themselves. Here are some of them:
The student loan
This is one of the main reasons for students to get cheap life insurance.
Almost every student in the United States has to take care of their own educational and other essential expenses such as housing, food, and transportation.
They have had to take out an education loan to pay for their tuition, which they will have to pay back after they complete their course.
There are two types of student loans: Federal student loans and private student loans. Federal student loans, which are provided by the federal government. Forgiven if the insured dies before repaying the debt.
However, this is not the case with private student loans.
Generally, private loans come with a cosigner. If the insured dies without repaying the full amount, the cosigner must repay the balance. In cases where there is no co-signer, the debt is paid by selling a portion of the estate named to the insured.
If you have proper insurance, you can avoid such consequences and also secure your co-signer.
Parents with debts
Most often, after graduation, their parents have their own debt that they may have incurred to make college education possible.
Student loans alone cost an average of $30,000, and there are additional debts such as home equity lines of credit, credit card debt, 401 (k) loans, or mortgage debt that are not forgiven after the borrower’s death. If they die before the debt is repaid, this can cause parents to grieve their child’s loss.
Grieving parents may have their own debts and financial responsibilities, which can place an additional financial burden on them.
In such cases, insurance companies provide parents with a lump sum death benefit, which goes a long way in helping to pay off the outstanding financial debts of their deceased child. Therefore, it is always a good idea to purchase insurance only at your college.
By simply filling out a form on their websites, you can get multiple life insurance quotes online and choose a preferred policy for you and your family.
If you are in a dilemma, you can consult the help experts of various insurance companies who will clearly give the details of life insurance policies for each company and help you choose the most suitable insurance plan for you.
Spending on young marriage and new parents
You may not believe it at first, but a large number of students marry and have children while in college.
According to the National Center for Education Statistics, about 20 percent of college students are married, and more than 25 percent of students take care of their children while in college.
Losing a spouse at this age can be daunting, and outstanding student loans can place an additional burden on the surviving spouse.
Life insurance provides a cumulative amount of money to help the surviving spouse take care of outstanding financial debt, funeral expenses, and raising children.
Care for elderly parents
For students who are youngest in their family or born at later ages, there will be an older parent by the time they graduate.
They may have a full-time job to take care of family expenses and may also be partially or fully dependent on their child.
Losing their child at such an age can be heartbreaking for the parents, and the added burden of paying the pending financial debt can make the situation worse.
If the students had life insurance, this would help their parents repay the financial debt by taking care of other essential expenses.