Does it make sense for college students to get life insurance? The answer is yes for some students if people will suffer heavy financial hardship as the result of their death. Many parents of students, and students who are parents can readily think of at least two circumstances. These two surprisingly common situations are described next:
When The Student Gets A Co-Signer For A Loan
Securing loans is a common way for students to finance their higher education. Getting a college degree from a four-year school can average between $36,000 and $128,000 in tuition and fees alone. This doesn’t include housing, meals, books, supplies, transportation, and personal expenses.
Often, the parents of the student co-sign the loan and are reasonably confident that the loan will be paid off by their son or daughter. However, if something happens where the child dies, the parents are left with a massive debt. If the loan was secured against their home, the consequences are yet more devastating. By taking out a life insurance policy, the student can protect his or her parents against this possibility.
When The Student Gets Married
College students getting married or raising children while in school is a common phenomenon. In this case, the argument for getting life insurance is similar to that of any married person. If something happens to the student, the insurance policy protects the spouse and dependents from financial hardship.
One concern of students in the above two circumstances is bearing the expense of the policy. However, life insurance is very cheap for a young and healthy person in their twenties and the monthly premium is a tiny fraction of the expenses of college life. If a student still finds it difficult to manage this, parents are often happy to help pay the premiums in order to benefit from the security provided by the policy.
If you are a college student with circumstances similar to those described above, getting life insurance is a sound financial decision that provides protection for the people you care about. It also locks you in to your low premium rate for as long as you keep the policy. If you have any questions, don’t hesitate to contact us.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.