Four Reasons Every College Student Should Consider Life Insurance Coverage
College students have a lot of plates spinning and many of them think that life insurance planning should not be one of them. But life insurance planning is actually really important for college students. Not only can it help their parents out but it can also give the student a firmer foundation once they leave school. Let’s take a look at four reasons every college student should consider life insurance coverage.
- It can cover your parents if they’ve cosigned on your student loans. If your parents cosigned on your student loans, then they will still need to pay them off if you pass away. Yes, that’s right, if you pass on, your parents might still receive bills in the mail for those loans you took out. A life insurance policy is a great, affordable way to make sure those loans don’t become a financial hardship on them.
- Buying life insurance early lets you lock in low rates. The younger and healthier you are when you buy life insurance, the lower your rates will be. By securing life insurance as a teen or young adult in college, even before you have a spouse or children to consider, you can ensure that your rates stay low as you age, which will make that policy far easier to afford than a new one would be in a few decades.
- You can accumulate cash values while in school. A whole or permanent life insurance policy accumulates cash values that you can later use by surrendering your policy or by taking tax-free loans. Those cash values can be used to help pay off student loans, to help pay for graduate school, as a down payment on a house and so on.
- Life insurance can cover funeral expenses. When you pass on, no matter how old you are when it happens, there are expenses associated with your funeral, burial and/or cremation. It’s not fun to think about but that’s the sad reality your family is facing. With a life insurance policy, you can ensure that the costs of your final expenses won’t worry your loved ones.
Life insurance doesn’t have to be expensive. Stay tuned for our post about term and whole or permanent policies to learn the difference and discover which is best for you.