Do College Students Need Life Insurance? 


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One of the unpleasant surprises of adulthood is just how much time, energy, and cash insurance takes up. Depending on your circumstances, you may need to get health insurance, renters insurance, and car insurance. All of this can take a heavy toll on college students who are earning little to no money. 

Which is why most students do not even consider the possibility that they might need life insurance. It seems like something they can put off indefinitely, or at least until they have a family of their own to look after. However, for many college students, life insurance is an important consideration. 

We’ll get into the reasons why college students might need life insurance. We’ll also cover the difference between term life insurance and whole life insurance. This information can help you make the best decision and save a lot of money on monthly premiums. 

Here are the main reasons to consider life insurance as a college student. 

You have student loans 

If you’re financing your college studies through student loans, you will rack up a fair amount of debt by graduation. While some of that debt may eventually be covered by loan forgiveness bills passed in future, you’re still likely to be paying off your debt ten years after graduation. 

Many students assume that if they die, their debt goes with them. Unfortunately, that is not how debt works. Someone is on the hook for that debt (unless you have no living family). Your parents would probably have to cover it. Life insurance will cover your student loan debt if you die, letting your loved ones off the hook. 

You have dependents 

Of course, just because you are a student does not mean you don’t have dependents. If you have a family of your own, you should consider getting life insurance, even if you are currently not earning money or are working a low-paying job. This is because you will likely have to support your family in future. Plus, there are probably ways you are already supporting them. 

If you have a child and take care of them even for a few hours a week, those hours are very valuable. Paying for childcare can be prohibitive for someone whose partner has passed away. You may not be paying your partner’s or child’s bills, or even paying for groceries, but you still provide for them in a real way. 

Your parents took on your college debt 

Student loans provide very important support for many young people looking to go to college. Without them, millions of Americans would have no way of pursuing higher education. However, they are also a huge commitment that most young people are not ready – financially or emotionally – to make. Students take on loans without any real understanding of what that means for their future. 

For this reason, some parents opt to take on the responsibility for their kids. They take out loans to pay for college rather than letting their children get into debt. If your parents are paying for your college through loans, life insurance will be a huge relief if something happens to you. 

If you feel like any of this applies to you, you may still be wondering whether life insurance is worth it. You’d have to spend a lot of cash every month and you’re probably not earning very much, if at all. This is why it is important to know the difference between term life insurance and whole life insurance. 

Term life insurance vs whole life insurance  

There are two types of life insurance: term and whole life insurance. The difference between them is significant for young people.  

Whole life insurance covers you for your whole life (as the name implies). Your premiums add up over time, leading to a very significant payout. For this reason, it is quite expensive. College students are unlikely to have the funds to afford whole life insurance, and it is not necessary.  

Rather, you can get term life insurance. This will cover you for a fixed amount of time – ten to thirty years, depending on your preference. It is far cheaper and will take care of your loved ones until you are earning money from a full-time job. 

College students generally don’t think about life insurance. But life insurance can be a huge relief to their parents and loved ones. Term life insurance may be the best option if you are still working your way through college. 

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