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Student life insurance

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Student life insurance policies are explicitly designed for students with low budget. They are further tailored, based on age when compared to the average policy holder.

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Types of student life insurance policies

Student life insurance policies are of two different categories; whole life insurance and term life insurance. Term life insurance can be drawn for 10 to 30 years. Whole life insurance extends for the lifetime of the student with assured death benefits for the beneficiaries of the policy. When compared, student life insurance premium rate is quite low in coordination to normal insurance policies. Itís also important to note that most students donít have a regular income.

Why is student life insurance required?

It is never too late to purchase an insurance policy. There are several reasons why having student life insurance is important.

Firstly, a lot of students under the age of 24 years meet with accidental death. In fact, the number of teens and those in their early 20s dying of motor accidents is comparable and sometimes more than those dying with natural causes or due to natural disasters. Therefore, a lot of insurance providers offer accidental death and dismemberment policies specifically designed keeping students in mind.

A lot of students have parents who are looking to retire once their children have a steady job and are financially strong enough to support them. Term life insurance policy becomes absolutely important in such a scenario. In case of accidental death of the student, before he or she is capable of earning and taking care of parents, the dependents will receive a sum assured, to take care of their needs.

An important reason, why student life insurance becomes very important is the debt incurred by a lot of students while in college. Undergraduate students have an average credit card debt in excess of $2000 while graduate students have an average credit card debt in excess of $8000. This is not the only kind of debt that is incurred by students. Student loans usually exceed $50,000 for some colleges and the sum is even bigger considering all the other student expenses that are incurred. These loans will be left unpaid and would turn into a huge financial liability for the parents or those who have provided the guarantee for the loans. A student insurance policy through the death benefits will be able to take care of this liability in case of the accidental death of the student before they are able to repay the loan on their own. Term life insurance can also help in the unfortunate scenario where a student loses a limb in an accident and is incapacitated, thus making it difficult to earn a regular income at a later stage.

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December 31, 1969


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