When parents think about life insurance, the focus is typically on protecting their family in the event of an unexpected loss of income from a breadwinner. But life insurance isn’t just for adults with dependents or mortgages. If you’re the parent of a college student, taking out a life insurance policy for your child might seem unnecessary at first glance—but there are real, practical reasons to consider it.
1. Cosigning Student Loans and Debts
Many college students take out private student loans with a parent as a cosigner. In the event of the student’s unexpected death, the responsibility for those debts could fall back on the parent. While some federal loans are discharged upon the borrower’s death, private loans often are not. A life insurance policy can provide the funds needed to cover these debts, preventing added financial strain during an already devastating time.
2. Covering Final Expenses
Funeral and burial costs in the U.S. can average between $8,000 and $12,000. Most college students don’t have the savings or assets to cover such expenses, which means families are often left to foot the bill. A modest term life insurance policy can ease this financial burden, allowing families to focus on healing instead of worrying about money.
3. Locking in Low Premiums
College-age students are typically in good health, which means they can qualify for very affordable life insurance rates. Buying a policy now allows your child to lock in low premiums for years to come. If they develop health issues later or wait to get insured when rates are higher, they may not have access to the same coverage at the same cost.
4. Establishing Early Financial Responsibility
Helping your child get started with life insurance can be a valuable lesson in financial planning. It introduces them to the idea of protecting their future family, responsibilities, and financial goals. Plus, starting early can open the door to other types of financial products down the line—such as whole life policies with cash value—that can support savings or future investments.
5. Peace of Mind
While no one wants to imagine losing a child, life is unpredictable. A small life insurance policy is a simple, cost-effective way to ensure that in the worst-case scenario, your family is financially protected. Peace of mind isn’t something you can put a price on, and that’s often what life insurance ultimately provides.
Which Type of Life Insurance Policy is Right for a College Student?
A 30-year term life insurance policy is often the most affordable and practical option for parents purchasing coverage for their college-age student. Term policies provide a set amount of coverage for a fixed period—typically at much lower monthly premiums than permanent life insurance. Locking in a 30-year term while your child is young and healthy not only ensures low rates, but also offers protection through key life stages such as early career years, marriage, home ownership, or starting a family. It’s a cost-effective way to provide long-term peace of mind without breaking the bank, especially when compared to the higher premiums of whole life or shorter-term policies renewed later in life.
Protect Your Family’s Future—Even When It’s Hard to Think About
At Blue Marsh Insurance, we’ve helped countless students (and their families) find life insurance policies that fit their needs and budget. Many of us are parents ourselves, and we know what it’s like to send kids off to school and want them to be protected.
Have questions? Give us a call—we’re happy to walk you through it.
📞 610-590-0152
💻 www.bluemarsh.com
A little more about Blue Marsh Insurance…
When he founded Blue Marsh, Tom Davenport wanted to create a different kind of insurance company. One that’s built on personal relationships and a local presence. One where you, the customer, feel more like a friend.
As an independent insurance agency, Blue Marsh Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price.
If you’re interested in starting a quote online or having us take a look at your current policies, click here!