You become an adult as you transition to life as a college student. It’s up to you to care for yourself.
As a result, you’ve likely thought about various tasks you need to complete before you head to campus for classes.
What about life insurance?
It may seem like you won’t need this protection until you’re older. That’s not always true.
Here’s a look at whether you should buy life insurance.
Why Do People Need This Security?
Those who buy life insurance need protection for a few reasons. They’re often someone who others need for financial support — parents, guardians, etc. This way, it’s possible for their family to have enough money to thrive until they can make their own.
It’s also common to purchase life insurance if there’s a debt that would endure beyond death. Their spouse or children can then pay off those expenses.
For example, you’d need life insurance if you were married with three children or if you were married with credit card debt. A single adult without any kids or debt may not need to pursue life insurance immediately. That’s because they don’t have any dependents who rely on them.
In a nutshell, it’s about family members you’d like to protect post-death. Your policy impacts them most.
Variables to Take Into Consideration
There are a few variables to think about before you make a decision. You’ll always need health insurance — but life insurance isn’t always necessary until you’re older with a family.
That’s why you should consider several factors if you want to purchase a life insurance policy as a college student.
It’s crucial to think about your future. Do you see yourself with a spouse and children? You may not have an immediate answer as an 18-year-old college student.
That said, it’s still common for young adults to start their families less than 10 years after school at 26-years-old. Your policy takes immediate effect, so it’ll exist whenever you decide to settle down with someone.
You should consider monthly payments, too. Because life insurance only protects anyone after they pass, it’s more expensive as you age. There’s a lesser chance you’ll die as a young adult. Your life insurance premium depends on various factors related to your lifestyle.
They’ll be less expensive if you’re a healthy individual who doesn’t like to swim with hammerhead sharks for fun.
A risky lifestyle could be a cause for a higher life insurance premium. But you’re also more likely to need life insurance if you choose certain activities.
But you may want to pursue life insurance for opposite reasons. Do you have an underlying condition that may worsen over time? It may be a smart idea to acquire a policy before you become unwell.
You may as well look into life insurance early if you know you’ll need to manage various concerns throughout your life. You’ll be protected prior to any sudden health concerns.
If you feel like there’s an urgent need to purchase a policy, it’s best to look into options sooner rather than later. You may otherwise have to pay more than you should. Consider your personal situation so that you can make a beneficial choice. It all depends on your future, lifestyle and health.
What Life Insurance Should You Buy?
You can either purchase term life insurance or permanent life insurance. Those with a term policy only pay for a certain period. You set up a timeframe for when your plan starts and ends.
This protection lasts for one to 30 years. A permanent policy provides insurance for life and requires a monthly premium. You can pull from this account to pay certain expenses when you’re alive, too.
You should choose a term policy if you decide to buy life insurance as a college student. Choose a 5- or 10-year plan you can reevaluate when you’re older.
If you have a spouse or children by then, it’ll be worthwhile to establish a permanent policy. But you can also sign another term policy if you don’t need a permanent plan at this time. This route allows for a more flexible approach.
other valuable tips:
That said, it’s essential to view your situation from all angles before you make a decision. Your current financial situation plays a role, too. After all, you likely have a few student loans to pay alongside rent and utilities. A life insurance policy can protect you and your loved ones — but it’s a payment you’ll have to maintain for life.
It’s Smart to Buy Life Insurance Sooner Rather Than Later
In a nutshell, you don’t need to buy life insurance as a college student. That said, you shouldn’t pass over an opportunity to protect yourself. Think about your current and future life goals so that you can choose an option that makes sense for you. A short-term plan could prove to be a valuable purchase when you’re a little bit older.
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