An interesting question crossed my mind the other day – do college students need life insurance. And as with any tough financial question, the answer is: it depends on your situation. There are many different reasons to consider getting life insurance while you are a college student, but I want to highlight two big reasons below. If these reasons don't apply to you, it doesn't mean that you don't need life insurance, but you still may want to consider it based on your individual needs.
College Students Getting Married
One of the biggest situations where you may want to consider getting life insurance is marriage. In fact, about 9% of college students are married, while another 15% on top of that are engaged. And while insurance may not be the first thing on your mind when it comes to your significant other, insuring a new marriage or engagement can help protect a couple against financial calamities.
The amount of life insurance you need should be based on how much you need to protect your spouse and any expenses that you may have together. These could include rent or mortgage payments, or other debts. In the event of your death, you don't want to burden your spouse any more by leaving him or her with a pile of bills that they can't pay. That is why it is important to make sure that you are both protected as you take this big step forward in life.
You might be thinking “How can I afford life insurance if I'm only in college?” Jeff Rose, a certified financial planner and founder of www.lifeinsurancebyjeff.com has this to say, “Many consumers are convinced that life insurance is way too expensive which is totally not the case. In fact, for someone in college it should be much cheaper since they are most likely much younger and in good health. A 26 year old could get a $250,000 policy for around $12 per month. I know that when I was in college and even though I was broke I could come up with an extra $12 per month.”
College Students and Debt
Another big situation when a college student should consider getting life insurance has to do with student loans and debt. If you need to get private loans for your education, chances are you had to have someone co-sign the student loan for you (usually a parent). The trouble with having a co-signer is that if anything happened to the student, the co-signer would still be liable for the debt.
This has happened countless times across the United States, where a child dies, and the parent is not only left without their child, but stuck with student loan debt they have to pay off. If you are getting your student loans cosigned, use a life insurance calculator to also factor in the costs of having enough life insurance to pay off the loans should anything happen to you. In fact, many parents are happy to pay the premium for that insurance just to be protected.
Do you think that college students should consider getting life insurance?