Life Insurance Policy

5 Reasons Your College Student Needs A Life Insurance Policy

My college student does not need a life insurance policy.

But is this REALLY true?

Well, the truth of the matter is that there are so many overlooked things that go on at a college campus and having life insurance on them will give you added peace of mind.

In today’s post, I am going to list out some reasons you need life insurance for your student and the best way to obtain it.

1. Cost of College

As a kid, I can remember my parents saying “Get Good Grades, Go To College and Get a Great Job,” in their minds, this was the path to accomplishing the American Dream.

While I do think the idea of the “American Dream” has changed, the one thing that hasn’t is that higher education and applied knowledge is at the forefront of society.

Even though the reason for getting a higher education has changed, the cost has steadily risen and shows no sign of stopping.

According to Collegedata.com, the average cost of a private college for the 2016-2017 school year was $33,480, and for a public college, it was $9,650.

What this means is that if your student decided to go to a private school, you are looking at around $133,920 when they finish and around $38,600 if they go to a public school.

So, get this:

According to a study done by Sallie Mae in 2016 around 41% of the costs for college was financed by parents through either savings or some sort of loan.

If you took out a loan and your child were to pass away anytime before this loan gets paid back, you could be on the hook for 41% of this debt.

That’s 54,907 for a private college and $15,826 for a public college. And for parents that are paying the full cost, well, you can understand how this can add up.

It may not seem like it, but getting a few term life insurance quotes and getting a policy that’s equal to what four years in college will cost would be a wise decision.

The rates are low, and even if you purchased a 10-year term, it would give you enough time for them to have finished college and even start paying off some of the debt.

2. Texting While Driving

According to a study by US news, nearly 80% of college students text while driving, and according to NCES in 2016 approximately 20.5 million students were in college.

Yes:

16.4 million college students are texting and driving at any given time. Isn’t it scary?

Now, I know you might be thinking… Not my child, however, based on these numbers, I can only assume that students who commute via public transportation are the only ones not texting and driving.

End Distracted Driving says that there are three types of distractions possible when driving; Manual, Visual, and Cognitive; Texting requires all three distractions to happen.

Some studies show texting while driving increases your chance of an accident by eight times, it’s basically worse than driving drunk.

There are around 11 teen fatalities per day caused by texting and driving. That is about 4,015 teens per year that will die from this distraction.

I know there are a lot of data points; however, I think it’s essential to understand how the numbers work.

With these figures, you can see why it’s vital to get life insurance for your college student.

3. Underage Binge Drinking

According to the CDC, one person dies every 51 minutes in motor vehicle crashes that involve an alcohol-impaired person in the United States.

This one fact is horrifying especially when you add to it that the rates of binge drinking are highest amongst people between the ages of 18-25, this is the exact age ranges of our college students.

We often think that drinking and driving is an issue exclusive to alcoholics.

However, this couldn’t be further from the truth according to College Drinking Prevention 1,825 college students between the ages of 18 and 24 dies from alcohol-related unintentional injuries, including motor-vehicle crashes.

Alcohol is also the easiest thing for a college student to get their hands on and when you add being away from parents and peer pressure, even the brightest students can make mistakes that can’t be taken back.

4. Opioid Epidemic

I must say that this is probably the most surprising reason to get life insurance for your college student, but it seems that it’s not going to slow down anytime soon and college will only exacerbate someone feeling the need to use these drugs.

According to the CDC deaths from drug overdoses now outnumber deaths caused by car accidents, with about 110 overdose deaths per day and more than fifty percent of those involving opioids.

In a survey by Q Market Research of Minnesota college students stated that not only were the opioids easy to obtain, but they would also usually have them within 24 hours.

This opioid epidemic is so severe that it has been declared a National Emergency by the current presidential administration.

It’s important to obtain life insurance before something like this occurs, once your child suffers from this condition, it becomes tough for them to get coverage.

If a life insurance company sees a prescription like Vivitrol on a prescription drug report, you can completely forget about them getting covered.

It’s important to think preventative when purchasing life insurance.

5. Suicide

You might not realize this, but suicide is probably the largest reason to obtain life insurance on your college student. According to Emory College.

The rate of suicide among college students can get up to around 7.5 out of 100,000 and that more than 1000 suicides per year happen on college campuses and is the third-leading cause of death among people aged 15 to 24.

Now:

I know these facts may be a bit disheartening; however, they are real numbers that have to get your attention.

If your student is part of the LGBTQ community, they are at even higher risk according to the CDC Nearly 29% of LGBTQ youth had attempted suicide at least once in the prior year of 2014 compared to 6% of heterosexual youth.

Depression really plays a huge part in a majority of these types of deaths, especially if students aren’t doing as good as they expected

When it comes to life insurance, the average policy will not payout on a suicide during the first two years of policy, so it’s essential to have life insurance in place before your student goes off to college.

One good thing from this is that you can get the most affordable life insurance when it’s for a college student.

In conclusion:

These are the new leaders of tomorrow. However, we still have to be responsible parents along the way.

It’s easy to believe that your kids are still exactly who they were when you used to change their diaper, however, that’s just not the case.

As we age, our personalities always change, and as a parent, it’s important that you work on learning who this new person is and how to bet the best parent for that person.

Peace of mind is something that no one can pay for, however, knowing that if you have to suffer a loss like one of a child, that you financially can take care of their final expenses and wishes will help you sleep better at night.