Co-signing student loans for your child? You may want to consider a life insurance policy, too.
As the cost of a college education continues to climb, many parents today are co-signing student loan agreements. But some families have discovered that after the death of their child, student debts can remain. In tragic cases, grieving parents have been saddled with debt and even faced collection efforts by lenders.
Generally, federal student loans can be forgiven by the lender when a borrower dies. Student loans made by private lenders? Not likely. Something else you need to know: Student loans are extremely difficult to discharge in bankruptcy. That’s why buying a life insurance policy for a college student or recent graduate can spare a family a great deal of financial trouble. It can help ensure that you aren’t saddled with student loans in the event you face the loss of your child.
The cost of life insurance for a healthy, young adult can be much less than you might think. It’s an affordable way to provide peace of mind, giving the family of a student or young adult time to heal from tragedy. It’s a gift of love for grieving parents. Have questions? We’re here to help you understand your life insurance options.