As the cost of higher education rises, families turn to credit to send their children to school.
Shock statistics from the Consumer Financial Protection Bureau state that at the end of last year, outstanding student loan debt was more than $ 1 trillion. Are you a parent college-going child with?
Have you co-signed a loan to cover the cost of a child’s education and if you take out a life insurance policy in the name of the child to settle the loan if he / she died?
Think of it this way. Like any other parent you want the best for your child and it includes university.
You are willing to co-sign a student loan because you know your child will work to pay back the loan when they have completed their studies. But then one day the nightmare of every parent’s reality and the child goes away before he or she can pay the loan, even before he or she can finish learning. What now? Since you co-signed a loan you are responsible for paying back what is owed.
Where is this life cover lane in the center stage. If you take out a life insurance policy in the name of the child you know if he or she takes away their life insurance policy pay policy beneficiaries a lump sum amount. These funds can be used to pay outstanding debts, including student loans, store cards and credit cards. The money can also be put towards funeral expenses plus cost of settling the estate of the child.
No parent wants to think about the death of his son. For many, the thought of their child dying before them is too horrific to even contemplate. But as responsible adults we have to plan for the worst and ensure that we are financially protected from the death of our child. Think of it this way. If your child disappeared and to be responsible for his / her student debt how would you cope with repayments? Would you be able to afford them? How, for example, would this unexpected financial burden affect retirement plans?
Take charge and talk to your child today to take out life insurance in his or her name. While it may be difficult conversation is one that needs to take place. And remember, take out life insurance while you’re young and healthy means you’ll save on premiums as you get older.