As a college student or parent of a collegian, you think about financial aid, which classes to take and cute co-eds. Life insurance probably isn’t even on your radar. However, you should consider whether or not life insurance is a good option for you.
Why Do People Buy Life Insurance?
Many people buy life insurance because they have families to support. The policy’s death benefits provide important financial security for the survivors. Now that you’re in the prime of life, you probably don’t want to think about planning for your death, but this advance planning can be beneficial as you enter adulthood.
Life Insurance Can Repay Debt
If you’re a traditional college student, you probably don’t have a family to support. However, you probably do carry student loan debt. Life insurance would repay that debt as well as financial obligations from a car loan and credit cards. Instead of leaving those financial obligations to your parents, consider buying a life insurance policy.
Buy Life Insurance While You’re in Good Health
You may also want to take advantage of your good health and young age. Life insurance policies are typically cheaper for young, healthy people. As you age or develop certain health conditions, you may end up spending more for life insurance.
What Types of Life Insurance are Available?
You have several options for life insurance coverage. In general, choose from:
*Term Life: Choose a specific amount of time, usually between 15 and 30 years, and pay a monthly premium for that term. Your survivors receive death benefits if you die before the term expires. *Whole Life: Pay monthly premiums and remain covered for life. Additionally, you can cash out a portion of your policy after you build equity.
The type of life insurance you buy depends on your individual needs and budget. Talk with your insurance agent today to discuss your options. Then, go have fun being a college student.
