We all know how burdensome student loans can be for college students. They can soar to six figures and sometimes take decades to pay off. Therefore, those who co-sign on such loans are taking on significant risk because, should the unthinkable happen and the student die, the co-signer is often responsible for repayment. Perhaps the answer which will offer protection and peace of mind is Life Insurance.
ErieSense.com says: “This is especially true for private loans: While many federal student loans let a borrower’s cosigners complete paperwork releasing them and the estate from the debt, many private student loans do not. What’s more, in community property states like Wisconsin, surviving spouses are often held responsible for a deceased spouse’s outstanding loans.”
Life Insurance Tip
Purchasing a Life Insurance policy to cover the life of a student loan is a prudent option, and a term life policy is typically the most logical way to go. Not only is it the most affordable in the short term, but the student or graduate can often convert the policy to a permanent policy later and begin to accumulate cash savings. Check with your insurance agent for all the details and to discuss which life insurance option would be best to pursue.
The William M. Sparks Insurance Agency in Lutherville - Timonium MD is a full service agency offering homeowners insurance, auto/car insurance, business/commercial insurance and life insurance to all of Maryland, Virginia and Pennsylvania since 1981. Our experienced insurance agents welcome your inquiries and are glad to discuss your coverage needs at any time.