Not everyone needs life insurance. The question of whether college students need life insurance is a controversial one. For that reason, it is important to get the facts right. Some college students can do well with life insurance while others do not need to have it. It all depends on the situation.
There are numerous justifications that have been raised regarding the need for life insurance for college students. There are two major reasons why a college student might find life insurance useful.
- If he or she is getting married, life insurance can come in handy. A significant number of college students are married, and others are planning to do so or they are already engaged. Life insurance for college students can avert a financial crisis in the first few years of their relationship. Students take life insurance to safeguard their spouses against financial difficulties and to take care of their expenses as they are hunting for jobs after college. They would need to pay rent, buy food, or clear their mortgage. This is done with the intention to protect your loved one from undergoing financial distress if you happen to die
- Life insurance can also be appropriate for college students who have accrued debts. These debts could have arisen from loans taken to finance your education and the expenses of college life. It is difficult to acquire a sponsorship or federal loans. Therefore, most students obtain private loans with the help of their parents. To avoid passing the burden on to their parents if they cannot pay the loan, it is advisable to have the life insurance for college students. Without life insurance, the co-signer of the private loan has to be liable for the loan in case the student is unable to pay or is unavailable. The worst-case scenario is when the student dies, leaving back the debt. Since life insurance protects the parents in case of such an event, some parents offer to help pay the premium to protect their future and that of their child. Those parents who students obtain federal loans are not in as much dilemma as those who obtain private loans. This is because federal loans are usually forgiven in the event that the student dies.
- Life insurance is also great if the college student has a baby. It will cater for the child’s upbringing when you are in college or graduated and still job hunting. Kids have numerous needs that require money to take care of.
Life insurance for college students is usually provided at a lower rate. It is meant to help as many students as possible to enroll for the policy while still at a young age. At this age, you probably have fewer health problems as opposed to older people. It will be more difficult to acquire cheap life insurance if you are engaged in activities that could put your life at risk. Most insurers will not be willing to provide coverage for you at a lower rate if you are in danger of dying during a rock-climbing accident or a motorcycle crash. Smoking and drinking should also be avoided.