The group discussion in English class, approaching exams, evening hang-out plans aren’t the only things college is about. Student loans, guilty of being dependent on parents, part-time job are the real things students in college fret about. Yes, the struggle is real for sure. Is there any way to secure the future both for student and the family?
There is a misconception regarding life insurance that it is for the middle-aged. In the recent past, parents have started children’s life insurance at an early securing the child’s future. One might contend that a college student won’t be able to purchase a life insurance policy. There are several life insurance policies which are pocket-friendly with varied payment options.
Why does a Student Need Life Insurance?
Below are the important reasons why college students should purchase life insurance:
- The fees paid to the college and expenses that need to be covered every month can be very difficult to afford.
- So, many college students opt for student loans. For most of the student loans, it is mandatory that a co-signer gives validation for the loan.
- The co-signer is responsible for paying the loan in case the student dies before paying the debt.
- It is necessary that every student who took a loan from a private lender purchases a life insurance so as to protect the co-signer.
- In case of an unfortunate death of the student, the coverage provided by the insurance firm can be used to pay the loan.
Protection for dependents
- According to research conducted on college students, 9% of them are married while they are in college and 15% are engaged.
- In a committed relationship, all one wants is to protect and care for their loved one. In events like a sudden death, the spouse or partner is left to deal everything like rent, living expenses and college expenses alone.
- A life insurance will prevent that and the life of the partner of the college student is secured.
- Parents are not usually dependent on students. However, in many families, all the savings, including the retirement one is used up to provide for college fees and other expenses.
- In cases like that, it is important that the student makes sure to re-fill the savings for parents’ sake.
- But life can be uncertain, and an unfortunate death of the student makes it difficult for the family to sustain, especially retired parents.
- A life insurance policy will provide coverage for the student’s death which will secure the life of the family.
Benefits of Life Insurance to Students – The Bright Side
Life insurance is generally perceived as a financial assistance after death. However, there are many advantages of life insurance for students.
- The premium amount paid to the life insurance policy depends on the insured’s age and health.
- So, the earlier one purchase a life insurance, the lesser premium needs to be paid.
- Many life insurance policies have a lock-in premium option.
- If the policyholder has purchased insurance while he/she is in college and has opted for a lock-in premium amount, life insurance is a lot cheaper.
- Parents also purchase life insurance for their children. Purchasing insurance when they are in college is a lot better as they are tax-saving options too.
- Not every student wants to join a firm after college. If a student wants to explore and start a business venture, getting a loan to start a business is difficult for a student right after college.
- Life insurance policies offer loans too.
- Instead of going through the whole hectic process with another company, it’s better to avail the loan offered along with life insurance.
Long- Term Goals
- Planning is everything and all the adults swear by it.
- When is college is finally over, suddenly there are quite a number of goals to be achieved like a house, car, etc. benefits which come along with life insurance give an extra hand in achieving these goals.
Points to remember:
- Before choosing an insurance, policy see if the premium amount is affordable.
- Check the claim ratio of the firm. Choose the firm which has a good history.
Life insurance shouldn’t be neglected just because it is unlikely for a college student to die. Life insurance is one of the basic financial needs. College is the right time to start thinking and acting about long-term goals and the options you have to assist in achieving those goals. Securing your family and loved ones is way cooler than the Friday night outs.