Your child is off to college, and while this is generally a very joyous time, it can also be very nerve-wracking: after all, the cost of college has been increasing over the last decade and it doesn’t look like it will be slowing down anytime soon. In fact, we have $1.4 trillion in outstanding student debt in this country! About 93% of student loans have a cosigner – and if your family is like many families, you are that cosigner. If something were to happen to your child and they were to pass, you would be responsible for your child’s student loan. You can protect yourself by buying life insurance for your college-age child, to ensure that these loans will not financially cripple your family in the future.
Before we look at the best types of life insurance for your family, let’s take a look at the types of student loans that your child might need to take out to fund their education. There are generally two kinds of loans that you can take out: federal student loans and private student loans. Federal student loans will most likely not require a cosigner, and if the borrower passes away, they will not be passed on to family members. On the other hand, if your child takes out a private student loan, they will most likely need a cosigner who will be responsible for the debt if the borrower passes away.
Do You Need Life Insurance?
If you are a cosigner of your child’s student loans, you will be responsible for the loan in the event of their passing. We know that no one wants to think about losing their child, but if they are going off to college and are taking out a private student loan, you should think about purchasing life insurance for them, since their debt would fall on you if they were to pass away.
Which Policy Is Best?
There are many different kinds of life insurance policies that you can choose from, but if you are considering a plan for a college student there are two main types of policies you should think about: whole life insurance and term life insurance. Term life insurance will cover your child for a set period of time (like 5, 10, 15, or 20 years) before expiring, while whole life insurance will last for the rest of the policyholder’s life.
If you’re looking to cover your child during their student loan payback period, a term life policy is a good way to go, since you can choose the amount of time you want the policy to cover them for. If you are looking for something your child can one day take over the payments for and have for the rest of their life, consider a whole life insurance policy.
How Much Coverage Should You Get?
When trying to figure out how much coverage you need, you will need to take into consideration the amount of the loan and interests.
If you have decided to get a life insurance policy for your child the next thing you need to consider is how much coverage you will need. The amount of coverage that you need will be determined by how large a student loan your child has. The best way to calculate the amount you will need is to take into consideration the loan amount, how long you expect the repayment period to be, and the amount of expected interest. Generally, private student loan repayment periods range in length from 5 to 15 years, with an annual interest rate that ranges between 3 and 15%.
Need Help?
It is not easy to think about losing your child, especially as they embark on this new journey in life. But if you are a cosigner to their student loans, you will be responsible for paying off their debt, which can be crippling, especially since the average student loan is almost $55,000. There are many great affordable life insurance options to choose from that will provide enough coverage for this type of debt for a low monthly price. The best way to find the right life insurance policy that will work for you is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates.Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Life insurance is incredibly important: having a policy will provide your family with a financial safety net when you are no longer around. And you know what? Life insurance is one of the easiest types of insurance to buy: not only is it inexpensive, but there are so many different types of plans to choose from. Didn’t know that it was cheap and that you had so many options? Well, there are quite a few things that might surprise you about life insurance.
1. Over Half of Americans Have Life Insurance, Most Through Their Employers
More than half of adults in the country have some type of life insurance policy, and the majority of this number is based on people who have it through their employer. But did you know that you can purchase a private life insurance policy in addition to your employer’s life insurance policy? You’ll probably find that employer-based life insurance is simply not enough for your family and their needs; not only that, but you will no longer have the policy once you leave your job.
2. Women Are Less Likely To Have Life Insurance
Sad, but true. According to the Insurance Information Institute, around 43% of women have no life insurance, and those who are insured have only a quarter of the coverage they need. It is just as important, if not more so, for women to have their own life insurance policy, whether they are single parents, working mothers, or stay-at-home moms. They contribute just as much, if not more, to the household and need to make sure their family is protected.
3. The Price of a Funeral Is One of the Most Common Reasons People Buy Life Insurance
Funeral costs are not cheap, which is why many people get life insurance.
For many people, when they think of life insurance, they think of the high price of funerals. A recent LIMRA study revealed an overwhelming 91% of people turn to life insurance as a way to cover final expenses. This makes sense since a funeral can cost on average $10,000-$15,000 – fortunately, though, many life insurance policies will cover these costs and then some. If you are looking for a life insurance policy mainly for funeral costs, consider a final expense life insurance policy, but if you need more coverage, there are other policies out there that provide more coverage.
4. Your Current Policy Might Not be Enough
If you have a life insurance policy, when was the last time you took a look at it? Updated it? What if your living expenses have gone up, and your family will need more money to live on? This is something that needs to be taken into consideration, which is why you should review your life insurance policy annually. While doing so, make sure you calculate your expenses and needs and decide if your current plan will meet those needs, or if you might need a policy with more coverage.
If you’re worried about high premiums or being denied coverage because of health conditions, have no fear! Many types of life insurance policies don’t require you to take a medical exam or answer medical questions. These policies will typically offer less coverage than traditional life insurance policies, but you will be approved no matter what.
There are so many great life insurance plans that can fit into your budget and needs.
There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Choosing a life insurance plan is not an easy task. You need to make sure that you review all of your options and choose the policy that best meets your and your family’s needs – and there are so many different kinds of policies to choose from that comparing them can take a lot of time. But comparing life insurance quotes from the top-rated companies is the best way to find the right policy that meets your needs and budget. So where should you start?
Getting Started
When looking for a quote, you’ll first need to have an idea of how much you’re willing to spend, and the amount of coverage you’re looking for. For example, do you want a policy that will help replace your income, pay off debts, or meet other financial goals for your family?
Then you’ll need to think about which of the two major types of policy – term life or permanent life – is right for you.
Term Life
This type of life insurance is generally the most popular type because it provides a good amount of coverage at rates that are affordable for many families. These policies cover you for a set number of years of your choosing, usually anywhere between 10 years and 30 years. During this time, if the policyholder passes away, the benefits are paid to the beneficiaries tax-free. The only downside to this type of policy is that if you outlive it, you will have to find another plan, which could end up being more expensive.
Permanent Life
This type of policy includes whole life and universal life insurance policies, which will cover you for the entirety of your life. One of the main reasons that people like this type of policy is that it has a cash value, similar to a savings account. With these policies, a portion of your premiums goes towards your cash-value account, which you can borrow from at any time. This benefit, though, usually means that these policies are more expensive than term life policies.
You will need to provide your personal information, and might have to undergo a medical exam for certain policies/companies.
Now that you’ve got an idea of the types of policies you will be looking at, you need to know what kind of information you will need to provide to insurers to get quotes. You will need to give them personal and contact information, including your name, date of birth, gender, phone number, email, and health history. Insurers might also ask about your lifestyle, including your health habits, hobbies, and occupation.
In addition, with some types of policy, you will need to undergo a medical exam, which will help the insurer assess how much of a risk you are to insure. You do have the option, though, to choose a policy that does not require a medical exam – just know that these types of policies are generally more expensive and do not usually offer as much coverage.
When you speak to an insurer, it is important to note that the initial quote that you receive will not necessarily be the exact amount you will pay in life insurance premiums once the policy goes into effect. Your initial quote is just to provide you with a ballpark figure of what they think you will pay based on the information given. Once they dive into your health history, driving record, and any other information, they will provide you with a more accurate dollar amount.
Finding the Right Plan
Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Have you gotten a quote from an insurance company, only to find that your actual premiums are higher than expected? This can happen especially with life insurance policies because quotes are generated based on the small amount of information you provide while you are looking for a policy. Once the life insurance company looks a little more closely at you and your level of risk, they might find something that changes your rate.
Quotes Are Only An Estimate
Your initial life insurance rates provided are only an estimate.
When you start researching life insurance, you will receive many quotes for policies. The quotes provided are only estimates of how much a policy might cost you based on the minimal information the insurance company has about you, or what you might call a “best-guess estimate.” These estimates are given to you before the life insurance company conducts a medical exam and gathers more information from you, so they will often change based on that information.
Why You Were Approved for Your Actual Rate
Once you provide your agent or insurance company with more information, you will be given a more accurate quote for your premiums: the more information you provide, the more accurate the quote for your premium rate will be. This is especially true after you have undergone a medical exam, because the insurer will then know the whole scope of your health history, as well as have information about your driving record, and any other factors that are used for determining rates. That means your real rates could be different from your initial quote because:
Your Initial Quote Was Not Based On Your Health
As we already mentioned, when you first begin looking at policies, your agent or insurer might not ask you the questions needed for a more accurate quote. For example, they might not ask you about your blood pressure readings, cholesterol levels, BMI, and so forth, and these stats help determine how much you will actually pay.
After you undergo a medical exam, then the life insurance company can provide a more accurate rate.
To follow on the above point, once you undergo a medical exam, your life insurance company will have much more relevant information about you, allowing them to better assess your risk. In other words, the more they find out about your health, the more accurate your quote will be. And if you are afraid of undergoing a medical exam, don’t be! It can work to your advantage, even if you have health issues: as long as you are managing any conditions and taking steps to improve your health, the exam can actually work in your favor.
The best way to get an accurate quote and not be surprised by your actual premium rates is to provide as much information as possible when comparing plans from different life insurance companies. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
Your children or grandchildren are your entire world, and we know you want to be there for them and provide for them as long as you possibly can. One of the many ways you can do this is by purchasing a life insurance policy and listing them as the beneficiaries, so you know the money will go to them and they will be taken care of in your absence. Making minors beneficiaries is very common and not a problem, but there are a few things that you should be aware of when doing so. Knowing the following will help you protect your children or grandchildren financially in the event of your death.
Rules Regarding Minors
If you are going to make a minor the beneficiary of your life insurance policy, it is important to know the rules surrounding them receiving your death benefit. These rules can be specific to the state you live in, but generally:
Most states require that a guardian is in charge to administer the money to the minor if the minor is not 18 by the time of your passing.
If you fail to name a guardian in charge, your next of kin will have to appoint a guardian.
The guardian will be in control of the money for the minor’s benefit until they reach the age of majority, or 18, depending on the state.
As you can see, it is very important that you appoint someone to be in charge of the money until your minor beneficiary is old enough to receive it themselves. Make sure you don’t skip this step: you want to choose the right guardian so you can ensure the guardian will do the right things for the children, and not use the money for their personal use.
What You Can Do
To ensure that your death benefit goes to your children or grandchildren as you intend, and that it does not end up in the wrong hands, put a competent adult in charge of the benefit. If you don’t, the court will appoint one for you, and you will not be able to control what happens to the money.
You should:
Name your children as beneficiaries, but have an adult custodian under your state’s Uniform Transfers to Minors Act (UTMA). You will need to fill out a form for this, if your state allows it.
Make sure this custodian is someone you know will use the money for the minor’s benefits. You should also be sure they will take care of your children or grandchildren until they’re old enough to receive all the money that is left.
Make a will that creates a trust, and name your children as beneficiaries of any proceeds the trust receives from your life insurance policy.
Need Help?
If you want to make sure that your children, grandchildren, or other minors are taken care of when you are gone, you need to find the right policy for you AND know the rules surrounding minor beneficiaries. The best way to do this is to work with a licensed agent who knows the rules and regulations regarding listing minors as beneficiaries in your state. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
If you have debt, then you know how stressful it can be – and debt is a big issue for many people in the U.S. In fact, the average personal debt for an American is a whopping $90,000! And if you are one of the many people saddled with all of this debt, you probably also stress about leaving your debt behind for your family to deal with when you pass away, or about not being able to leave them anything when you’re gone. The solution? Life insurance can help you pay off your debts AND allow you to provide your family with money when you are gone. But the big question is: can you even buy a life insurance policy when you are in debt, given that life insurance companies look at your finances when you apply for coverage?
Can You Buy A Policy if You’re in Debt?
If you are plagued with debt then you might be worried that you won’t be able to purchase a life insurance policy, but the opposite is actually true. Life insurance companies will approve anyone trying to buy a plan even if they are in debt: after all, you need a policy just as much as other people. In fact, you might have even more reason to buy a life insurance plan, so you can help your family pay off your debt and then some when you are gone.
And fortunately, life insurance premiums are normally inexpensive monthly payments: they can be as low as $30 a month for a healthy 30-year-old. Because policies are so affordable, it’s better to buy now rather than later, since you could end up paying more in life insurance premiums as you age. That’s because the older you get, the more you will pay in premiums for your policy, so it is better to find a plan now that will offer your family financial security at a low rate.
Will Debtors Take Money From Your Policy?
Now you know that it’s possible to buy a policy even if you’re in debt, but will the money go right to your family, or will your debtors come knocking at your door after your passing and claim your death benefits? Fortunately, life insurance is not like other assets: your home, cars, personal belongings, and bank accounts all go into an estate when you pass, which can be used to pay off your debts before the remainder of the money goes to your loved ones. But with life insurance, your beneficiaries will receive the death benefit payout directly and will then be able to spend it however they choose.
Looking For An Affordable Plan?
You can still find a great and affordable plan by comparing plans from different companies.
Your family has financial obligations that will not go away when you are gone: they will need your help more than ever with their expenses, and the last thing you want them to worry about while they are grieving is money. The best way to find an affordable life insurance plan, even if you are in debt, is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.
