Why Students Should Consider Term Life Insurance

Posted by Steve Jen
3
Jul 29, 2015
134 Views
One of the major issues amongst young adults is that they go without financial planning and investment. A survey reveals that people under 30 significantly lack health and life insurance than older consumers.

Financial experts believe that early adulthood is the most advantageous time to purchase life insurance. Although investing in life insurance at an early age may seem like a waste of money, there are some great reasons to buy insurance sooner rather than later. Let’s have a look at why students should consider term life insurance.

You may Have Dependents

Life insurance is not for you. Rather, it is for those you leave behind. If you have people who rely on your income, like parents, grandparents, or siblings with special needs, you may want to make sure that their future remains financially secure, should something happen to you. However, term life insurance can give you peace of mind, assuring that your loved ones wouldn’t be financially affected by your death.

Costs are Low

Since life insurance premiums are calculated considering mortality risks, life insurers find young students with good health, as that is less risky for the company, and hence they offer highly affordable premium rates to young adults. Additionally, qualifying for an insurance policy as a healthy young adult is a lot simpler and cheaper than applying after your 40s or being diagnosed with a health condition.

You May Get Your Debts Covered

Today, students are burdened with surprising levels of student loans. According to a study, seven out of 10 college students graduated with debt in 2012. The average debt load among these students was $29,400, while some of them had loans that escalated high into six figures.

These education debts usually fall on parents, if something happens to the borrower. For example, if your parents have co-signed your education loan, they would have to pay off the debt if you die suddenly. In order to avoid this, you should buy enough coverage to take care of all your financial issues and leave your loved ones with little stress to deal with.

You May Arrange for Your Burial Expense

Even if no one depends on you or you have no debts, you should consider term life insurance to cover your burial expenses in the event of your death. The average funeral may cost between $10,000 and $15,000 which may be managed efficiently if you have enough insurance coverage.

Before buying cheap term life insurance, it is best to compare rates from different carriers to get the best insurance coverage at the cheapest price. For more details, visit us or call at 1-800-521-7873.
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