College students are under a great deal of financial stress. Coupled with the added stress of financing college, the burden can be too much. Not only are they focused on getting an education, but also how to budget living expenses and balance student loan debt. And as the years go by, college tuition costs will just continue to rise.
If you're a parent, you may be assisting your child with college related expenses to ensure that they get the education they need to succeed in life. But what would happen if you were no longer in the picture? How would they fund their education? Would they be able to stay the course or would their future turn out differently? This is where a life insurance policy can help.
Approximately 70 percent of all U.S. students are juggling college while simultaneously taking on jobs.1 By having a life insurance policy, you may be able spare your child from the stress of having to work while in school.
If you were to die, the money provided by a life insurance policy for a minor child could be set aside in a trust. So when the time comes, your child can concentrate full-time on getting that diploma sooner rather than later, and not having to choose between going to class or working to pay the bills.
A life insurance policy can also provide relief from student loan debt. According to the New York Federal Reserve, the amount of student debt outstanding in the U.S. was up to $1.3 trillion at the end of 2016, an increase of about 170% from 2006.2 Moreover, student loan default rates have surged to a two-decade high, as even employed college graduates struggle under the debt burden. Even if your child were to successfully complete college, leaving him or her to pay for college with student loans after you're gone can significantly affect their financial future.
While a college degree isn't a guarantee for success, it can be a solid start to a brighter and more secure future. As a parent, one way you can help ensure that your child has a better-than-average start by establishing a life insurance policy - today.
For more information on life insurance and saving for college, visit Protective's Learning Center.
1. Georgetown University, “Learning While Earning: The New Normal,” 2015.