Life is full of uncertainties and we can never know what life has planned for tomorrow. And the students are no different in this. Even if you are a student, this does not mean that you are immune to the unwanted events of life. Life insurance policies protect you and your loved ones from the uncertainty of life. In the event of an unfortunate event, the insurance provider helps with a lump sum of money by helping the family take care of the financial debts and other responsibilities. Losing a child can be a harrowing experience for any parent and the accumulated cash amount can be very helpful in such situations. Parents or loved ones can use this amount to help them take care of funeral expenses, pending personal or education loans and other essential expenses. In this article, we will explain what the importance of life insurance for students is and the benefits offered by various insurance providers.
Life insurance options for students
Insurance providers are presenting beneficial life insurance policies for different types of customers and students are no different. Usually, students have more fun spending time in college than thinking about protection from unfortunate accidents. For once, it may seem irrelevant to students, but if you go into the details, you will find that life insurance is a smart purchase. However, most people do not realize the need in the early stages of their life and therefore cannot buy one for them. These policies are providing students with a useful way to take care of their study and other essential expenses.
There are multiple companies that offer life insurance plans at affordable prices online. You are simply asked to build an online site for the official insurance provider website or on an insurance portal with multiple providers. The insurance representatives of different companies will reach you with the best insurance quotes according to your needs. They will patiently listen to your questions, clearly explain all the available plans and suggest the most suitable for you. By comparing the different plans for their coverage and benefits, you can choose a plan that offers maximum coverage at the best price. Furthermore, students are believed to have a longer life expectancy than some older buyers and should live longer. Therefore, insurance policies offer a cheaper insurance plan to attract young buyers. If you are not married and a student and it occurs to you to purchase a life insurance plan, you could benefit from an exceptional discount on your insurance plan and get a fairly cheaper premium than someone who is married or works with a company. Also, if you buy a life insurance plan early in life, you can help your parents take a breather if they get relieved because they won’t have to think much about the uncertainty of the future.
Reasons to buy a student life insurance plan
There are several reasons that can force a student to buy life insurance for themselves. Here are a few:
The student loan
This is one of the main reasons why students buy a low cost life insurance policy for them. Almost every university student in the United States must take care of their educational and other expenses, such as the cost of housing, food and transportation themselves. They had to apply for an education loan to pay tuition fees which will have to be repaid once the course is completed. There are two types of student loans: federal study loans and private study loans. Federal study loans provided by the federal government. give up loans if the policyholder dies before repaying the debt. But this is not the case with private study loans. Generally, private loans are provided with a signatory and if the policyholder dies without repaying the full amount, the signatory will have to repay the balance. In some cases, there is no co-signer, the debts are paid by selling part of the properties named to the insured. Having the right insurance in place can help you avoid these consequences and also protect your petitioner.
Parents with debt
Very often, when students graduate, their parents will have their debts that they could have taken to make university education possible. The study alone will cost $ 30,000 on average and there are additional debts such as own funds credit lines, credit card debt, 401 (k) loans, or mortgage debts that cannot be reversed on the death of the borrower. In the event that they die before repaying the debt, this can create problems for parents who are suffering from the loss of their child. Mourning parents may have their own debts and financial responsibilities, which may add an additional financial burden to them.
In such cases, insurance companies offer parents a flat-rate death allowance that helps a lot in taking care of the pending financial debts of the deceased child. Hence, it is always a good idea to buy insurance only in your college. Just by 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 the details of the life insurance policy for each and help you decide on the most suitable insurance plan for you.
Expenses for young weddings and new parents
At first you may not believe it, but a large number of students get married and have children while in college. According to the National Center for Education Statistics, approximately 20% of college students are married and over 25% of college students take care of their children on their way to college. Losing a spouse at this age can be daunting and the ongoing loan can result in an additional burden on the surviving spouse. Having life insurance will provide an accumulated cash amount which will help the surviving spouse to take care of outstanding financial debts, funeral expenses and help raise children as well.
Care of older parents
For students, who are the youngest members of their family or who were born in subsequent years, they will have an older parent at the time of graduation. They may or may not have a full time to take care of family expenses and may also depend partially or totally on their child. If they lose their child at this age, this can be excruciating for parents and the additional burden of paying off outstanding financial debts can make things worse. If students had taken out life insurance, this would help their parents pay back their financial debts like taking care of other essential expenses.
by Anil Kumar