Many families wonder if they should get college student life insurance as their son or daughter heads off to school. The answer is: maybe.

There are a few situations where it can really make sense to have life insurance as a college student. But for many college students, it’s simply an unnecessary expense until later in life.

Here’s when you should get college student life insurance.

When Does A College Student Need Life Insurance?

There are three main situations when a college student needs life insurance:

1. Private Student Loans
2. Dependents
3. Parental Support

Private Student Loans

If a college student borrowed private student loans, more than likely, a cosigner was required. 90% of private student loans have a cosigner. If the student should die, the cosigner becomes legally responsible for the loan.

This is a situation where having life insurance can be extremely beneficial, since the life insurance payout can cover the debt. 

Dependents

If the college student has their own children, it can make a lot of sense to have life insurance. These children depend on their parent, and even if that parent is a college student, should they pass away, it could leave a financial burden on the family.

Someone will need to care for the children. They will have expenses. They may want to go to college someday, and ideally someone would pay for that. Life insurance can help with all of this and protect your family from having a financial burden raising these dependents.

Parental Support

Some parents will spend a lot of their own money providing for the student’s college. In some cultures, it’s traditional for the child to take care of the parents. If something happens to the student, this plan could be derailed, and the parents could face financial hardship. Life insurance can also help protect in this situation. 

What Type Of Life Insurance Should A College Student Have?

A college student should really only need a term life insurance policy. Term life insurance is great – you pay a fixed amount each month for the term (usually 20 or 30 years) and you get the coverage. As a college student (or young adult in general), you’re usually healthier, so your insurance rates will be much cheaper.

Related: Term vs. Whole Life Insurance

How much insurance do you need? Most students probably only need $100,000 or less. If you have a lot in student loans, or dependents, you can opt for more.

At companies like Ladder, you can get $100,000 in life insurance for as little as $5 per month.

Compare all your options here: Best Online Term Life Insurance Companies.

People Also Ask

What type of life insurance should a college student have?

College students should have a term life insurance policy that is large enough to cover any debt they have, as well as provide for any dependents they may have.

Should students have life insurance?

It depends. For college students that have private student loans, dependents, or parents that rely on their support, life insurance can be a smart investment.

Why don’t college students need life insurance?

Many college students don’t need life insurance if they don’t have private loans or anyone that relies on them for support.