Student loans and grants for college
When it comes to student loans, we mostly think of how will we live with them? Far fewer people ask the question, “how will I die with them?” And it can be an important consideration.
Federally backed student loans generally provide for a discharge upon death. The borrowers family can provide documentation and paperwork that will release them from the debt. Privately backed student loans may not be as generous. It’s not that they will come after your survivors for the debt, but they may seek to have the loans at least partially paid out of your estate. (Student loans and grants for college)
You can avoid any possibility of that happening by having a term life insurance policy in a sufficient amount – and a long enough term – to pay off your student loan debts in the event of your death. The policy death benefit can match the amount you owe, and be reduced in the future, as the loan balance is paid down, and eventually retired completely. (Student loans and grants for college)
If nothing else, the policy will remove a potential financial question mark from your passing. This is especially important if the amount of your student loan debts are into the tens of thousands of dollars – or higher.. Student loan and insurance (Student loans and grants for college)
If you're co-signing big student loans for your child, you may want to buy a life insurance policy while you're at it.
While no one wants to imagine the death of their child, taking out insurance on your son or daughter -- or asking them to purchase their own plan -- will protect you from being hit with mountains of debt should tragedy strike...insurance
(Student loans and grants for college)
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