Life Insurance and Student Loans

Life Insurance and Student Loans

Should you consider getting a Term Life Insurance Policy?If you have an outstanding Student Loan and you unexpectedly die , the loan is typically discharged at death after they see if any funds could be paid out from your estate.

The one exception may be if there was a Co-signer (Generally a Parent) on the loan. If you pass away in this situation the co-signer  could become liable for the debt. This is where you would need to consider getting a Term Life Policy to protect the co-signer in the event of your death.

My understanding is that some Student Loans offer a Debt Cancellation option.This would , in essence, be a built in Life Insurance Policy. Check your paperwork.

If you need a Term Life Insurance policy the good news is that you are probably young and in good health. Fully Underwritten Term Life Insurance Policies are very affordable. You can run a quote HERE.  If you have any current Health issues or if you are involved in any High Risk Activities ( Pilot, Scuba Diver, Mountain Climber, Racing etc,) then we would need to speak so we can review your information. Also, If you are living out of the Country I do offer International Term Life Insurance, although it is a more expensive product.

If your Student Loan is under $100K then we offer several carriers that require No Medical Exam with the application. This can save time and if you hate needles this is the ideal plan!

In summary, if you have a co-signer , please consider a Life Insurance Policy to protect the co-signer of the loan. Depending on your age and current health conditions these policies can be very inexpensive.

Please fill out my quote request form or give me a call. My number is 512-963-5000.