Spin Off: Life Insurance for College Students

[mom2boys]

Another thread made me realize that as student loand co-signers, we should have life insurance on our college student should the unthinkable happen.

I have made some calls and done some internet research. I am having difficulty finding a company that will insure my 19 year old male for more than $30,000.

If you have life insurance on your college student:
What insurance company do you use?

And if you don't mind sharing (either or both):
How much are they insured for?
What are the premiums?

I am having difficulty even asking these questions becuase none of us ever wants to have to cash such a policy.

 

[VickiVM]

Another thread made me realize that as student loand co-signers, we should have life insurance on our college student should the unthinkable happen.

I have made some calls and done some internet research. I am having difficulty finding a company that will insure my 19 year old male for more than $30,000.

If you have life insurance on your college student:
What insurance company do you use?

And if you don't mind sharing (either or both):
How much are they insured for?
What are the premiums?

I am having difficulty even asking these questions becuase none of us ever wants to have to cash such a policy.

All of my children have a whole life policy since they were babies, so the premiums are fixed and pretty low...maybe $40 or so every month for all 3. HOWEVER, I believe it's only for $10k. I'm pretty sure the cash value is much higher since it's whole life, though. Definitely worth my time to find out where we stand. Thanks for bringing this up!

 

[tvguy]

No, neither of my kids have life insurance, never have. No need for it. They are 22 and 26,, no dependents, and the only debt they have is student loan debit which is automatically forgiven if you die. When they have dependents and debt, then they should get life insurance.
Same with older folks, assuming they have no dependents or debt, and enough in the bank to cover their final expenses, no need for it. My mom dropped all her life insurance when she turned 62, put the money in long term care insurance. Now that she is 90 and needs long term care, I'm glad she did that.
And always buy term insurance. You get the most coverage for the lowest premium that way.

 

[mom23boys]

We have a rider on our insurance policies for our children since their birth. When my oldest entered college last year I called my agent and was told he was insured till he was 26 under the policy. It only cost a few dollars a month and the policy is for $25k.

 

[Docmom]

My kids have $100000 whole life policy each from Modern Woodmen insurance (it's a fraternal organization but any can get it). Don't recall the monthly amounts but around $50 each max. They have nice dividends already, are guaranteed to be able to purchase more when they are older and are guaranteed to keep the current premiums. The younger you get insurance the cheaper it tends to be. The other benefit of MW is their bank which has good dividends and a scorecard reward system on their debit and credit cards where you can use points for items or for visa gift cards.

 

[ksjayhawks]

We still have the policy that we got for ds when he was little. It is for $20,000 I think. Will encourage him to keep it when he is on his own.

Even though, as a pp posted he probably won't have dependents or debt, in the case that anything ever happens to him, funeral costs would be covered and we wouldn't have to worry about having the money to cover it. That alone is worth it to me.

 

[StitchesGr8Fan]

I think OP is asking because she may consign on a student loan. If the student dies and the parent co-signed, the parent still has to pay. I've read an article where a woman was struggling to pay her sons loan after he died.

 

[tvguy]

I think OP is asking because she may consign on a student loan. If the student dies and the parent co-signed, the parent still has to pay. I've read an article where a woman was struggling to pay her sons loan after he died.

To quote Judge Judy and Suze Orman "never, ever cosign a loan"

 

[runwad]

I think OP is asking because she may consign on a student loan. If the student dies and the parent co-signed, the parent still has to pay. I've read an article where a woman was struggling to pay her sons loan after he died.

^^ RIGHT. Op try AccQuote on the web. My kids aren't in college yet but DH and I have term insurance thru them.

 

[LynnM]

We have a policy on our 3 oldest through State Farm(bundled with home and auto). Oldest has 125k, other 2 have 100k each-enough to cover their parent plus loans. I think that each policy was $15-20/month. As far as not co-signing, that is a personal choice. In order for our children to attend the university they chose, we needed to take out loans for them.

 

[mom2boys]

We have a policy on our 3 oldest through State Farm(bundled with home and auto). Oldest has 125k, other 2 have 100k each-enough to cover their parent plus loans. I think that each policy was $15-20/month. As far as not co-signing, that is a personal choice. In order for our children to attend the university they chose, we needed to take out loans for them.

Yes, I consigned my son's student loan. I'll sign his brother's too. We aren't in a position to pay their tuition. Our boys are only a year apart and I wouldn't change that. They are best friends. Unfortunately that means two in college at the same time.
I think Suzy Ormond would tell me that since we failed to fully fund their 529 plans, we owe it to them to consign their loans.

 

[mamacatnv]

My son is heading to grad school, his debt is going to be at least $100K and I have no doubt we will end up co-signing on some of it. This thread is timely, I need to be out looking for life insurance for him. Its not something I like to think about obviously but its something we need to do to protect all of us.

 

[Docmom]

I know Suzy Ormond would disagree with me but I disagree with a lot of her suggestions too. I don't view life insurance for kids or young adults as insurance in case of death per SE; I view it more as an investment for their future. At some point they will truly need life insurance but the cost will be significantly higher than if purchased when they are young and healthy. Likewise if they ever develop any chronic illness their premiums will be higher. The biggest benefit of purchasing insurance early is locking in a good rate as well as a guarantee of insurance (some policies also have a future purchase guarantee). While you are at it look into disability insurance which is also significantly cheaper when you are young. Having my own private disability policy saved our family when I was diagnosed with cancer in 2009 and had to stop working because of the treatment side effects. Most people worry about death or retirement but when something like cancer hits you in your 40's it changes your perspective.

 

[mom2boys]

I know Suzy Ormond would disagree with me but I disagree with a lot of her suggestions too. I don't view life insurance for kids or young adults as insurance in case of death per SE; I view it more as an investment for their future. At some point they will truly need life insurance but the cost will be significantly higher than if purchased when they are young and healthy. Likewise if they ever develop any chronic illness their premiums will be higher. The biggest benefit of purchasing insurance early is locking in a good rate as well as a guarantee of insurance (some policies also have a future purchase guarantee). While you are at it look into disability insurance which is also significantly cheaper when you are young. Having my own private disability policy saved our family when I was diagnosed with cancer in 2009 and had to stop working because of the treatment side effects. Most people worry about death or retirement but when something like cancer hits you in your 40's it changes your perspective.

Excellent points.

 

[aprilgail2]

My job gives us 50,000 life insurance on each child.

 

[wdwmom0f3]

Our children are riders on our life insurance policy. We have each one insured for $10,000 which would only cover expenses. Now that our oldest daughter is 20 I really should check into this to see when she would no longer be covered under our policy.

 

[mom2boys]

I was able to get my son a $250,000 for $12 per month. It's a "hybrid" policy. That means he has immediate coverage for accidental death and $25,000 for illness related. As soon as he has his physical, he'll be fully covered for 10 years.

The company is highly rated.

Thank you all for your input.