Does my young adult need life insurance?

Many teens, college students and young adults don’t have life insurance because they’re still receiving financial support from their parents and don’t have anyone that relies on their own income, if they even have any. However, because many young adults have massive amounts of student loan debt, parents are taking out life insurance polices on their children so that their student loans can be paid off if they pass away unexpectedly.

While federally insured loans are forgiven in the event of death, privately held loans are not and the parents may be responsible for repaying the money. The insurance money also helps take care of funeral and burial expenses which are things that most people don’t budget for when their child is a teen or young adult.

If your young adult child has no dependents, then they are probably best served by having a term life insurance policy for the amount of their total debts, plus $10,000 for funeral and burial expenses. By the time the term is over, your child should have their student loan debts repaid or at least be earning a larger income than at present.

If you’re in the TK area, you can contact Warrior Insurance today to find out more about buying life insurance for your teen or young adult.

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