Life is full of uncertainties and we can never know what life has planned for tomorrow. And students are no different in that. Even if you’re a student, that doesn’t mean you’re immune to life’s unwanted events. Life insurance policies protect you and your loved ones against the uncertainty of life. In the event of an unfortunate event, the insurance provider helps with a lump sum of money to 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 cash can come in very handy in such situations. Parents or loved ones can use this amount to help cover funeral expenses, outstanding personal or educational loans, and other essential expenses. In this article we are going to explain the importance of student life insurance and the benefits offered by different insurers.
Student Life Insurance Options
Insurance providers are presenting advantageous life insurance policies for different types of customers, and students are no different. Usually, students prefer to enjoy their time at university than to think about protecting themselves from unfortunate incidents. For once, it may seem irrelevant to students, but if you dig into the details, you’ll find that life insurance is a smart buy. However, most people do not realize the need in the early stages of their lives and therefore cannot buy one for themselves. Such policies provide students with a useful way to take care of their studies and other essential expenses.
There are several companies that offer life insurance plans at affordable prices online. You are only required to fill an online form for insurance providers official website or insurance portal with multiple providers. Insurance representatives from different companies will contact you with the best insurance quotes based on your requirements. They will patiently listen to your queries, clearly explain all available plans and suggest the best one for you. By comparing different plans for their coverage and benefits, you can choose a plan that offers the most coverage at the best price. Additionally, students are considered to have a longer life expectancy than some older buyers and are expected to live longer. Therefore, insurance policies offer a cheaper insurance plan to attract younger buyers. If you are not married as well as a student and care about buying a life insurance plan, you may qualify for a big discount on your insurance plan and get a significantly cheaper premium than someone who is married or works for a company. Plus, if you buy a life insurance plan early in life, you can help your parents breathe a sigh of relief, since they won’t have to think long about the uncertainty of the future.
Reasons to buy a student life insurance plan
There are several reasons that may compel a student to purchase life insurance for himself. Here are some of them:
The Study Loan
This is one of the main reasons why students buy a cheap life insurance policy for themselves. Almost all college students in the United States must take care of their educational expenses and other essential expenses, such as the cost of housing, food and transportation. They had to apply for an educational loan to pay their tuition fees which they will have to pay once the course is completed. There are two types of loans provided to students: Federal Student Loans and Private Student Loans. Federal student loans provided by the federal government. waive the loans if the insured dies before paying the debt. But that is not the case with private student loans. Private loans are generally made with a co-signer and if the insured dies without paying the full amount, the co-signer must pay the balance. In cases where there is no co-signer, the debts are paid with the sale of a part of the assets named to the insured. Having adequate insurance can help you avoid such consequences and ensure that you are also a co-signer.
parents in debt
Most of the time, when students graduate, their parents will have their own debts that they may have incurred to make a college education possible. The student loan alone will cost $30,000 on average, and there are additional debts such as home equity lines of credit, credit card debt, 401(k) loans, or mortgage debt that are not discharged upon the death of the borrower. Should they die before paying off the debt, this can create a problem for grieving parents over the loss of their child. Bereaved parents may have their own debts and financial responsibilities, and this can add an additional financial burden.
In such cases, insurance companies provide a lump sum death benefit to the parents which goes a long way in taking care of the outstanding financial debts of their deceased child. Therefore, it is always a good idea to buy insurance only at your university. By simply filling out a form on their websites, you can get multiple life insurance quotes online and choose a preferred insurance policy for you and your family. If you are in a dilemma, you can get help from experts from different insurance companies who will clearly provide you with life insurance policy details for each one and help you decide on the most suitable insurance plan for you.
Expenses of Young Marriage and New Parents
You may not believe it at first, but a large number of students get married 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 college students care for their children while they go to college. Losing a spouse at this age can be daunting, and the outstanding study loan can place an additional burden on the surviving spouse. Having life insurance will provide an accumulated amount of cash that will help the surviving spouse take care of outstanding financial debts, funeral expenses, and also help raise the children.
Elderly parent care
For students, who are the youngest in their family or born in later years, they will have an older parent by the time they graduate. They may or may not have full time to take care of family expenses and they may also be partially or totally dependent on their child. If they lose their child at that age, this can be heartbreaking for parents, and the added burden of paying off outstanding financial debts can make matters worse. If students had life insurance, it would help their parents pay off financial debts and take care of other essential expenses.