Life Insurance & Student Loan Debt
How a Cheap Life Insurance Policy Can Pay Off Student Loan Debt
There’s a popular saying, “your student debt dies with you”. But did you know that that logic applies only to some federal student loans? So if you or your loved one got a student loan from a private lender/bank, their death (god-forbid) wouldn’t be your only concern - you’d have a massive student loan balance to pay off, making things only worse. Life insurance can protect you from shouldering the leftover debt as a student loan cosigner.
When you co-sign a student loan, it’s important to read the fine print - in most cases, the cosigner would have to pay back the outstanding loan balances. If you don’t have enough cash lying around at home, you might find yourself in a tough spot. Life insurance can prevent you from dealing with this unlikely situation.
Some experts say that a term life insurance policy is the way to go, with it being an affordable and relatively discreet policy to purchase. A 10-year, $100,000 term policy for a 20-year-old could cost as little as $8 to $12 per month. We say 20 year old because buying life insurance when you or your child are in college keeps your premiums low. Life insurance is for the things you can't predict. While it's unusual that someone in their early 20s will die, accidents and illnesses do happen.
In the rare case someone finds themselves paying for the student loans of a deceased student, the life insurance ship has already sailed. If you are cosigning a student loan, think ahead about protecting your money and credit from problems with the loan.
iLifeInsurance can help you find a policy that meets your needs and fits within your budget - all within seconds. You can also talk to an insurance expert through their website and figure out what policy would work best to pay off student loans.