According to Forbes, student loan debt has ballooned to $1.7 trillion with the average student leaving college $37,691 in debt.1 Over the last two decades, tuition and fees rose 30% at 4-year private colleges and 52% at public 4-year schools.2 That’s a whole lot of debt, some of which you may carry. If you were to die before your debts were paid off, who do you think will have to carry that burden?
Well, depending on the type of debt and its terms, if you had a co-signer, such as your parents or grandparents, it will likely be them, or possibly their estate if they are no longer living. Think about that before you say you’re young and single and couldn’t possibly have a need for life insurance. You may need it just as much as someone raising a family.
Truth is, most people rarely consider life insurance while they’re in their 20s because they mistakenly believe it is only something their parents buy to protect themselves in case one of them dies and the surviving spouse is saddled with paying all the expenses.
And although you may not be married yet or, perhaps, like an increasing number of young Americans, marriage is not part of your plans for the foreseeable future, your death would still have a financial impact on your loved ones.
Plus, there are actually a number of benefits you gain by purchasing life insurance at a young age. First, if you were to buy life insurance today, it would likely ensure that you would be eligible for insurance in the future—even if the state of your health changes.
Second, the older you get the more expensive insurance becomes. However, the opposite is usually true if you buy now. The cost of level term life insurance gets locked in at the rate for your selected term, or time span, when you first purchase it, as long as you continue to pay the premiums.
Look ahead. Who knows what college financing will look like in the future? By keeping up with your insurance, it becomes a valuable part of your financial portfolio. One day, your coverage may help your kids or grandkids with their education. It’s hard to imagine now, but you just never know.
What insurance is right for you?
If you are single, don’t overlook the need for life insurance. To find out more including features, costs, eligibility, renewability, limitations, and exclusions about group term life insurance contact: nysbainsurance.com.
1“Student Loan Debt Statistics in 2021: A Record $1.7 Trillion,” Forbes, February 20, 2021.
2 “Trends in College Pricing and Student Aid 2020,” College Board, 2020.