Covering College With Life Insurance
Many parents would do anything to give their children the best education possible. You may already be saving up or planning to help your children financially down the road. What you’re probably not planning for is what would happen to this plan if you died unexpectedly before it was completed.
A life insurance policy may offer some financial protection for your children to help ensure they will have the resources to pay for college.
Protecting Your Children’s Future
The national average cost of attending a public four-year institution is about $28,000 per year (including room and board). That number rises significantly for people at private and out-of-state universities.
If you passed away while your child was in college, would they have enough money to finish their degree? Would they have to take out student loans or work extra jobs to pay their bills?
A life insurance policy can help protect your children’s educational future by ensuring they will have the money to pay for college, even if something were to happen to you.
If You’re a Student
In 2016, the average college graduate left school with more than $37,000 in debt. More and more Americans are entering the workforce with massive student loan burdens, with a rising number of those coming from private lending institutions.
Federal student loans are forgiven if the borrower dies before the full amount is paid back, but private lenders have no such requirement. If you took out your private loans with a parent as a cosigner, which many students do, as parents typically have better credit and can secure a lower interest rate, banks can hold that person responsible for paying back the remainder of the loan.
A term life insurance policy can work as an affordable way to help protect your parents from this type of dilemma, provided you purchase a policy while you are young and healthy.