College Planning

Financial Stress Relief for Students with Life Insurance Coverage

You save for years so your child can attend college. But what happens when tragedy strikes and those funds are needed elsewhere?  A life insurance policy can help ensure your child still gets that needed support.

Life Insurance Could Alleviate Financial Burden for Your College Student

College students are under a great deal of financial stress. If 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.

A 2013 survey of college students found that nearly 80 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. has risen from $364 billion in 2004 to $1.6 trillion in 2014. 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. http://www.citigroup.com/citi/news/2013/130807a.htm
2.  https://www.newyorkfed.org/newsevents/speeches/2015/mca150205

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit www.protective.com.

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