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When I took out my student loans, I also bought life insurance to protect my parents if I died before my debt was paid off.

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The author is not represented.

I consider myself lucky. I was fortunate enough to be able to go to art school and follow my dreams, where I learned everything from captivating fiction writing to thrilling audiences with cinema, and I been taught by truly stellar teachers.Unfortunately, I didn’t have anyone to pay my fees, qualify for any scholarships, or receive any financial assistance. My tuition fees were therefore fully paid by student loans, mostly private. My parents had to be co-signers to even qualify. By the time I finished my bachelor’s degree, I had almost $ 100,000 in debt. I quickly realized exactly how much of a burden it would be to pay. But it wasn’t just my future at stake. If I wasn’t able to repay the loans, the debt collectors would come knocking on my parents’ door. Even if something catastrophic happened to me – including death.

This is why I had a life insurance policy since I was 18. Before I even finished my education and racked up all that debt, my parents bought a policy big enough to cover my private student loans if anything happened to me. (Federal student loans are canceled if the borrower dies before the loans are repaid, even if the borrower had a co-signer.)

Buying life insurance early has its advantages

As I learned later, life insurance is something people usually don’t worry about until they get older, get married, or have a family. It’s a great way to make sure your loved ones can keep a roof over their heads if something terrible happens to you. But in my case, the life insurance policy was just to prevent my parents from having to pay my debt until the end of their life.


There are, however, some advantages to purchasing life insurance at such a young age. For starters, it is less risky for insurers to offer a policy on the life of a teenager. Since teens won’t die of old age anytime soon (barring an unforeseen tragedy), insurers can collect premiums for decades before they have to worry about paying a death benefit, making it a pretty safe financial investment. on their part. Because of all this, the premiums were much lower than they would have been if I had waited until my forties or fifties to purchase a policy.

By taking out a life insurance policy at such a young age, I was also covered before disqualifying or high risk life events occurred. Similar to health insurance before the adoption of ACA, life insurance providers are very careful not to provide coverage for people with pre-existing conditions. I even had to take a blood test to prove that I was in good health! It is just a fact of life that health problems are inevitable the older we get and the more time we spend on this earth. If I were to be diagnosed with cancer and then try to get a life insurance policy, I would either be turned down outright or would have to pay exorbitant premiums. But since I was insured before anything serious happened, from a health point of view, they cannot cancel my coverage or increase my premiums if I develop a health problem.

My policy has a time limit

My life insurance policy won’t last forever. However, it is virtually guaranteed that it will cover the entire term of my student loans. While shopping for life insurance plans, we were aware that I could pay off my student loans for up to 25 years. We have purchased 30-year term life insurance instead of whole life insurance to save money on the premium.

I have made a lot of progress on my student loan balance, but the amount of life insurance that would be paid out in the event of a tragedy does not change. So not only would that cover the rest of my loan, but it could leave a nice nest egg.

Eventually, I will be able to remove my parents as co-signers of the loan so that they are not responsible for my debt if I die before it is paid off. If I got married, my husband wouldn’t be responsible either.

With me as the sole borrower, it may be possible to get the full loan repayment in the event of death. However, there is always the risk that my “estate” will be forced to pay it back, taking a share of any savings or assets that I might otherwise leave behind for my loved ones. The life insurance policy will also protect their inheritance.

Find a life insurance policy to protect your student loan co-signer. Get help today from Policygenius »

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