Life insurance is a basic necessity of life if you have people who are dependent on you financially. It ensures that after your sudden demise, your loved ones are not left with financial hardships. People of all ages can buy life insurance individually for themselves nowadays.
It is advisable for babies, for kids, for teenagers, for youngsters, for adults, middle aged people, old people, senior citizens, parents, grandparents and great grandparents. Anyone who is insured is covered for not only himself but for his loved ones too.
Anyone who is insured is better prepared to leave this world in peace that his death will not make his loved ones, left behind, go bankrupt. This blog will help college students, in particular, to decide how to go about purchasing life insurance for themselves to make their future secure.
For any college student, excelling and getting good grades is a purpose of their life. They try to pass with better grades to make sure that they get better jobs. Is it wise for the college students to get insured with life insurance to guarantee their studies would not get disturbed, if they come across any financial crisis?
- What is Study Insurance?
- What type of life insurance policy is best suited for a student life insurance?
- Why should college students get “Student Life Insurance”?
- How much coverage should a student buy?
- Highest coverage available for the graduate students by life insurance agency
- How much does life insurance for students cost?
What is Study Insurance?
Study insurance is a college student’s life insurance to act as his safety net in times of financial vulnerability. It prepares them to secure a bright future whilst being alive, and prepare for a death which would leave their family in a financially stable position. Student life insurance is also called:
- Study Insurance.
- Student Term Life Insurance
- Student Life Insurance Policy.
What type of life insurance policy is best suited for a student life insurance?
For study insurance, it is always better to buy a Term Life insurance policy. The reasons are:
- It is for a specified term 0-30 years.
- When you start the early age premiums, it is very cheap!
- Term life is affordable.
- It lasts till your term ends, so you are insured with lesser money and a good time deal.
- In case of an untimely death, God forbid, you can be covered for burial insurance and funeral ceremony costs. You do not strain your loved ones to bear the funeral costs.
Also Read: Is It Better to Pay Life Insurance Annually?
Why should college students get “Student Life Insurance”?
There are three major reasons for college students to buy life insurance for themselves:
1.For paying student loans or any other mortgage debt.
Most of the time students get insured with a Term Life insurance policy to pay off any past student loan. With the student life insurance, you can try to pay off your loans.
2.For safety of their current or future dependents after marriage.
In case you’re still married or plan to get married soon after graduation, it is the best decision to buy a 30 years’ term life insurance policy. Since you’re young and healthy, you can easily get an application approved. The premiums would be very pocket-friendly at a younger age.
After 30 years’ you would have a substantial death benefit payout for your dependents to get rid of the monetary obligations. They can use this payout for many effective lifestyle and health improvements.
3.For their own final-expense, Funeral or Burial Insurance
With this death benefit payout from your term life student insurance, you can relieve your family from stress of gathering funds of $10,000 for your funeral ceremony.
How much coverage should a student buy?
There are 3 formulas to calculate the right amount of coverage for a college student:
- Estimate your future salary after graduation, multiply it by 12, go for buying at least this much coverage and opt for a 30 years’ term.
- If you’re not working and only studying but your spouse is earning, apply with his income and see if your application gets approved. Again buy a coverage at least equal to or more than his annual income or twice his annual income. Choose the longest term of 30 years.
- If you’re in a law or medical school, your promising career awaits you and reputable insurance agencies are ready to cover for high coverage Term Life student insurance. Again go for 30 years’ term to level the premiums and get peace of mind.
Highest coverage available for the graduate students by Life Insurance Agency
- Banner Life $1,000,000 for grad students, $2,000,000 for medical/law students.
- Brighthouse Financial $1,000,000.
- Corebridge Financial $1,000,000.
- Lincoln Financial $250,000.
- Mutual of Omaha $250,000.
- Pacific Life $250,000.
- Protective $250,000.
- Prudential $1,000,000.
- Transamerica $1,000,000.
How much does life insurance for students cost?
For a 20 years’ old student buying a $50,000 Term Life Policy for 20 years’ time period, the monthly premium would be as little as $15 or so. It is a pretty good decision to buy and go for a term life insurance during college life to lock-in your life insurance at such cheap rates. Although, following factors affect the monthly premiums cost:
- Age of policyholder.
- Gender of policyholder.
- Coverage amount applied for.
- Coverage length of the Term Life policy applied for.
What sort of life insurance suits the demands and needs of the college students?
The term life policy is best suited for graduate students since it is affordable and it covers a specific term.
What can you use your insurance money for?
A life insurance money can be used for many purposes such as a child’s future to paying for your own current college expenses.