Why Would A College Student Purchase Life Insurance?

  1. 63333 POINTS
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    Peggy Mace
    Most of the U.S.
    A college student would most likely purchase life insurance to pay off education loans in case of death, to prevent that burden from falling on the shoulders of someone else. Also, a college student might want to lock in a good rate while young and healthy, or start planning for a future of raising a family. The life insurance company will look at projected income for the occupation for which the student is being educated, and the amount of time left until the degree will be completed, to help in determining how much life insurance a college student can get.
    Answered on May 17, 2013
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  2. 35 POINTS
    James Kamphenkel
    Many college students today are in a position of having to take out thousands of dollars in student loans in order to finance their educations.  In many instances, parents are co-signers on these loans.  In the event of the college student's untimely death, parents might not only have to grieve the loss of their son or daughter, but also have to deal with repayment of the student's debt.  To me this, together with the cost of final expenses (funeral, unpaid medical bills, etc.), is the most obvious reason to purchase life insurance coverage - so that in the event of death, your loved ones won't have to be burdened with raising the funds to repay the debt.  Another reason to go ahead and buy life insurance is that in all likelihood, the cost of the insurance will never be lower.  Life insurance is age-rated.  Assuming that you are in good health, don't smoke, etc., a college student can buy term life insurance coverage very, very affordably - under $200 per year for $100,000 of coverage is common.  You can even lock in that low premium for up to 30-years with many life insurers.
    Answered on May 17, 2013
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