Life Insurance for High School/College Students or Co-Signing Loans
Are you co-signing loans for education, cars or home purchases…or helping fund something for them directly?
If you or someone in your family are co-signing for college loans, or possibly funding their college tuition or other significant purchases by borrowing from your own retirement assets, you are not alone. However, if you are willing to increase your personal financial liabilities, you should consider life insurance coverage specifically for certain contingencies. Adult children may not yet have a family or assets to protect, but they might soon. There is an easy way to do something great for your children and yourself with a fairly simple solution.
Consider putting a simple (and comparatively inexpensive) 10-20-30 year level term policy (or a cash value policy if you prefer) on each child. If they are healthy and their lifestyle fits the preferred category, the premium would likely be a relatively affordable expense in exchange for some well-deserved peace of mind. After they pay back their loans and maybe start their own families, you can decide to continue to fund the policy yourself or transfer the policy to them. Either way this allows you to offer them a great start in protecting their future prosperity while still paying premiums that were calculated back when they were much younger. It’s a smart move, and everyone will be better off for you making it.