If you are a college student, life insurance is probably not at the top of the list. In fact, it is probably not even on your list at all. You are more focused on reading various articles, working on research papers, or worrying about the job market and just how viable your degree will be.
However, even though it may seem like something you do not need to worry about, college students do need to think about life insurance. It is actually more necessary than you might think.
Why Do Students Need Life Insurance?
College students don’t often have families to protect, and even if they do, what college student makes enough money that it really matters? If you’re a traditional college student, you may not have a full time job, but you might be married. You could even have a family. If you’re a non-traditional student who has gone back to college, you might still be working full-time and raising children.
If you were to die before your student loans are paid off, your spouse may very likely be responsible for them. This is not the case with federal student loans, but it is the case with almost all private loans. If you are not married, your estate or any co-signers on the loan may have to pay it back. This means your parents could end up in debt for your student loans if they had co-signed for them.
If you have gone back to school later in life and have a family, you do not want to leave them without your income while at the same time saddling them with your student debt. That is why many students turn to companies that specialize in term life insurance in Illinois. These companies are able to provide all of the coverage you might need as a student while keeping the premiums reasonable.
Then there is the idea of insurability. Many life insurance companies will refuse to cover young people who have developed serious medical conditions. It’s simply not a good bet for them—the chances of the person dying are much higher, which means there’s a greater chance the insurance company will have to pay out. If you do not have life insurance and develop something like diabetes or a heart condition, you may never be eligible for it, or you may have to pay much higher premiums.
However, if you are covered and then are diagnosed, well, you are already covered. You are safe until the policy runs out or you let it lapse. This means being covered while fairly young and healthy can guarantee you have life insurance later on in life. Many college students take out a life insurance policy just for this reason. Some policies charge a level premium for the life of the policy, but others charge more as you get older. That means buying life insurance while you are in your early twenties may not cost you very much at all.
Therefore, no matter how old you are, if you are in college think about life insurance. It can help your family to pay back any student loans they are required to pay, and it can guarantee that you have life insurance for years to come.