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Should College Students Get Life Insurance?

College Students Get Life Insurance

Written By Doug Mitchell

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA.  Doug has spent close to 30 years in the insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health.  Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

Holly Mitchell  &

Holly Mitchell’s background in life insurance insurance goes back to 1985 when she worked for her father who was a New York Life agent. Holly has a marketing degree from Auburn University and has had a life insurance license since 2008. In addition to advising life insurance for customers all around the country, Holly is our website fact checker.

Rob Pinner   &

Rob Pinner is the founder and CEO of Pinner Financial Services servicing all 50 states. Rob started his insurance career in 2002.

Louis LaBash

Results-driven and innovative life insurance professional with 30 plus years of life insurance industry sales and marketing experience. Recognized as a pioneer in the field, leveraging phone and internet channels to exceed personal sales of over $100 million during the first decade of the 21st century. Creator of a highly effective intuitive IUL life insurance sales software that facilitated the sale of millions of dollars of indexed universal policies by numerous life insurance agents. Proven track record as a Managing General Agent (MGA), Life Agent, IUL Life Insurance Sales Software developer, and leading-edge creator of insurance marketing tools, educational content, and delivery systems.

Table of Contents

Today the economy is unpredictable, and student debts continue to rise. Many parents and guardians find themselves grappling with an unexpected question: should they get life insurance for their college-going child? While the thought of life insurance is generally reserved for those a bit further down the timeline of life, the present-day context paints a different picture.

The Importance of Life Insurance for College Students

Life insurance is a financial safety net. As college tuition skyrockets, the majority of students find themselves burdened with student loans. More often than not, these debts become their family’s responsibility should a tragedy strike. Beyond the financial implications, life insurance offers emotional peace of mind. It ensures that financial strain doesn’t add to a family’s burden during an unimaginably painful time.

The Financial Perspective

When deciding on purchasing life insurance for your college student, it’s crucial to get a comprehensive understanding of the financial implications. Life insurance isn’t just about covering funeral expenses; it’s about safeguarding a family’s financial stability in the face of debts that might have built up in the pursuit of education.

Imagine a scenario where a family has taken multiple loans – from federal sources, private lenders, and perhaps even a mortgage against their home – all to ensure their child gets the best education. Government-backed student loans may be forgiven in the tragic event of a student’s death. Still, private loans and home mortgages won’t just disappear, leaving the grieving family with an immense financial burden. A well-thought-out life insurance policy can offer solace against such daunting liabilities.

Deciphering the Types of Life Insurance

When diving into the world of life insurance, two primary types emerge as frontrunners for college students: term life insurance and permanent life insurance.

Term Life Insurance: This policy covers a specific term or period, usually one year to 30 years. Its primary advantage lies in its affordability, especially for younger individuals, because of its temporary nature. For college students, this can be a cost-effective way to ensure financial security for their loved ones during their years of study and loan repayments.

A permanent life insurance policy guarantees a death benefit for the insured’s entire life, provided premiums are paid. It also builds cash value over time, functioning as an investment. Its longevity makes it more expensive than term life insurance, but it could serve as an early investment for college students. The longer they pay premiums, the greater the growth in cash value, which can be an asset later in life.

Busting Misconceptions about Life Insurance

While the idea of buying a life insurance policy for our kid might seem grim, it’s essential to tackle the misconceptions head-on:

1. “It’s too early to think about life insurance.” The younger one is when they acquire life insurance, the lower the premiums tend to be, especially if they’re in good health.
2. “I don’t have enough assets to justify life insurance.” It’s not just about assets; it’s about future liabilities, like student loans, that might become a burden for someone else.

Factors Determining Life Insurance Premiums

Your lifestyle choices and health play a pivotal role in the premiums you’ll be quoted:

1. Physical Health: This isn’t just about being young. Being in good shape, having a balanced diet, and regular exercise can lead to reduced premiums. Even small steps towards a healthier lifestyle, like losing excess weight, can lead to significant savings.

2. Smoking Status: Smokers invariably end up paying more, sometimes up to three times more, than their non-smoking counterparts. When determining premiums, life insurance companies account for the increased risks associated with smoking, such as heart disease and lung cancer.

3. Other health issues: Life insurance rates are based on your health. If you have underlying health issues such as diabetes, cancer, uncontrolled high blood pressure or cholesterol, rates might be higher.

Our role as Independent Agents

Deciding which life insurance policy to buy can be confusing. As an independent life insurance agent, we can provide you with quotes with many companies to choose from. We currently have access to over 60 companies. You can use our quoter on this page to see just how little your premiums will be.

FAQs About Life Insurance for College Students

Can college students get life insurance even if they have pre-existing health conditions? Absolutely, though it might affect the premium rates.

Do all student loans require life insurance? No, but it’s a safety net, especially for private loans that aren’t forgiven upon death.

In Conclusion

As we consider the financial intricacies of today’s world, the question isn’t so much “Should college students get life insurance?” but rather “Can we afford not to consider it?” In a time of economic unpredictability and burgeoning student debts, life insurance for college students provides more than just financial protection – it offers peace of mind.

It’s easy for us. We could potentially have initial quotes for you before tomorrow, which none of us are guaranteed to see. So don’t wait to make this important life decision. Your family deserves it.

Simply give us a call or fill out the form on this page.

Compare rates using our quote tool right on this page, or call us at 800-712-8519 to discuss your life insurance options.

Picture of Doug Mitchell, CLU

Doug Mitchell, CLU

Doug Mitchell, CLU holds a BA degree in Finance from Auburn University as well as having obtained a Chartered Life Underwriter (CLU) designation from The American College in Bryn Mahr, PA. Doug has spent close to 30 years in the life insurance and financial planning industry and has held licenses to sell securities, long-term care insurance, health. Some other notable items about Doug: Top of the Table Million Dollar Round Table member (MDRT). (MDRT is a global, independent association of the world’s leading life insurance advisors) | Premier Partner with Lincoln Financial and Cabinet Member | Served two years as President of the Auburn/Opelika Association of Financial Advisors | Life Millionaire status at Horace Mann Insurance Company and was awarded the Life Agent of the Year Award | New York Life, Executive Council Member | Currently serves as President of Ogletree Financial, a life insurance General Agency. | Doug is also a financial blogger addressing the topics of life insurance, annuities and retirement income planning.

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