College students are young and in the prime of their lives. Why think about death, especially if you are the parents? Death seems much more imminent for you, not for them. However, there is a factor that makes thinking about parents taking out a life insurance policy on their college students more worthy of consideration.
Many parents have co-signed with students for their college loans. Some parents have taken out loans themselves or borrowed against the equity in their home for their college students. The average parent debt for a college student now stands at about $34,000. According to Stephanie AuWerter (CNN), a life insurance policy may be a wise investment.
Government-backed college loans are forgiven if a student dies; however most private lenders do not forgive such loans, and any equity borrowing is between you and the bank holding your mortgage. Imagine having to deal with not only the death of a child but also unforgiving and unforgiven debt for an unfinished college degree,
A college student’s age makes a $50,000 life insurance policy both affordable and well-considered. For about 100 dollars annually parents can protect themselves.