Life insurance can help protect some students in the worst case — but it is not a prerequisite.
If you are a college student, you probably already know what accessories you need to equip your student room and complete your courses. But some students – and let's be honest, their parents – may be asking themselves if students need to think about life insurance, especially during uncertain times.
Do college students need life insurance? If so, what does life insurance for students look like? In addition to the extra long salmon set and zoom-friendly ring candles, should you add "affordable life insurance" to your shopping list?
"It really depends on the situation," says Kristen Wilson, Underwriter Innovation SME at Haven Life. “Usually, students do not need life insurance. But students who have partners and children may want to take out life insurance to protect their relatives in a worse scenario.
When should students consider a life insurance plan? Does the student's age matter? What about a college student who has a large number of student loans – should they take out a life insurance policy to pay off student loans after death?
Here's what you need to know about life insurance for students – including why the most traditionally-aged, full-time students do not have to worry about taking out a life insurance company.
In this article:
When do college students need life insurance?
When should a college student take out a life insurance policy? Believe it or not, the answer is quite simple. "The death benefit for a life insurance policy can help compensate for lost income," Wilson explains. "If you have loved ones or relatives who may be affected by your lost income, you should consider a life insurance policy."
Many college students have some kind of job while attending college, whether they enroll in a work-study program as part of their financial aid package or take a side to earn extra money. However, most university students do not submit the type of income that life insurance can help reimburse.
That said, some non-traditional students could benefit from an affordable life insurance policy. If you are a parent taking college classes while holding a full-time job to pay for college and family expenses, for example, having a life insurance policy in place is a very smart move. "If you work while in college, you can buy a life insurance policy so that if the unexpected happens, the payout can help compensate for lost income for your relatives," says Wilson.
Should part-time college students consider life insurance?
College students who go to school at night, go online, or otherwise tailor their courses to the requirements of a full-time job can benefit from a life insurance policy — especially if they have a partner or children who may be dependent on their income.
What about students who go to college part time and work part time? It all depends on how much money you bring in on your part-time job — and whether you have loved ones who rely on that money to cover their basic needs.
Home-parents who are going to college part-time should also consider life insurance. Why? Because your loved ones trust you to provide much-needed care, and in the worst case, a life insurance policy can help you cover the cost of that care.
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What about life insurance and student loans?
Do you need life insurance if you have a student loan? Not necessarily- although there are some situations where life insurance can help people who may have signed your loans.
It is important to understand what happens to your student loans after you die — and keep in mind that not all loans are treated the same. "Federal student loans are taken out at the time of death," Wilson explains. Many private loans, however, are not – and if a parent or other loved one acted as a co-signer on your loan, they may be legally responsible for the unpaid balance.
Does this mean that students should take out life insurance policies to help their loved ones pay off unpaid student loans? Not if they are not earning any income yet. "If parents sign up for student loans, parents should have life insurance that can help them pay the cost of any unpaid student loans," Wilson explains. "Once the college student has worked, they can take out a life insurance policy so that if they go away, the payment can help their co-signatories repay their student loans."
When should you apply for your first life insurance?
How old do you need to be to apply for life insurance with an insurer? At Haven Life, applicants must be at least 18 or 20 years old (depending on state of residence) to apply for a medically signed Haven Term policy and at least 18 years old to apply for Haven Simple, which, if approved, requires no medical examination to complete coverage. (It is important to be honest in the application process. The issuance of the insurance or payment of benefits is based on the truth of the answers you give in the application.)
This does not mean that you should apply for life insurance but when you turn 18 years old. Instead, Wilson advises young people to look for another important milestone in life – the day you start earning enough income to support yourself. Getting your first life insurance early – even if you do not yet have a partner or children – is a good idea because if you take out life insurance when you are young and in good health, you can lock in a low monthly premium payment that can be as long as 30 years with an insurance provider.
“You can apply for a life insurance policy with an insurance company as soon as you want. It helps to have a good idea of what your [long-term] income will be, so you can take this into account when deciding how much coverage you want, ”Wilson explains,“ even if you have no relatives at the time. .
If you go to college – or if you decide to go back to college – while earning this income, it's good to have life insurance in place. Otherwise, you can go ahead and spend your college days focusing on class work, paying college tuition, extra courses and building lifelong friendships — and save your life insurance application until you have used what you learned in college to help you start your career.
Our Editorial Policy
Haven Life is a customer-centric life insurance agency supported and owned by the Massachusetts Mutual Life Insurance Company (MassMutual). We believe that navigation decisions about life insurance, your personal finances and overall well-being can be refreshingly easy.
Our editorial policy
Haven Life is a customer-centric life insurance company backed and 100% owned by Massachusetts Mutual Life Insurance Company (MassMutual). We believe that navigation decisions about life insurance, your personal finances and overall well-being can be refreshingly easy.
Our content is created for educational purposes only. Haven Life does not support the companies, products, services or strategies discussed here, but we hope they can make your life a little less difficult if they suit your situation.
Haven Life is not authorized to provide tax, legal or investment advice. This material is not intended to provide and should not be relied upon for tax, legal or investment advice. Individuals are encouraged to consult their own taxes or attorneys.
Haven Term is a life insurance policy (DTC and ICC17DTC in some states, including NC) issued by the Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and is offered exclusively through Haven Life Insurance Agency, LLC. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Haven Term Simplified is a simplified life insurance policy (ICC19PCM-SI 0819 in certain states, including NC) issued by C.M. Life Insurance Companies, Enfield, CT 06082. Numbers and functions for insurance forms and riders may vary by state and may not be available in all states. Our agency's license number in California is OK71922 and in Arkansas 100139527.
MassMutual is rated by A.M. Best companies like A ++ (Superior; Top Category 15). The rating is from Aril 1, 2020 and may change. MassMutual has received various ratings from other rating agencies.
Haven Life Plus (Plus) is the marketing name of the Plus Rider, which is part of the Haven Term policy and offers access to additional services and benefits free of charge or at a discount. The rider is not available in all states and is subject to change at any time. Neither Haven Life nor MassMutual are responsible for the provision of the benefits and services made available under Plus Rider, which are provided by third party providers (partners). For more information about Haven Life Plus, visit: https://havenlife.com/plus.html