Life Insurance for Graduates
Life insurance is probably the last thing on a recent graduate’s mind. They just entered into a part of their life they’ve always dreamed about – getting a real job, buying their first home – their lives are completely in front of them. Life insurance is something they should strongly consider looking into though. Here are three reasons why they should be prepared by purchasing coverage.
Insurability – For many, this will be the best time (in your life) to apply. You are young, healthy, and don’t necessarily need a large sum of coverage. These are all aspects that factor into the cost of life insurance. Additionally you will likely receive the best rating classification due to your great health. This could be a huge difference if you unexpectedly run into health issues later in life.
Existing Coverage stops – A common source of coverage for children is for them to be added onto an existing plan of their parent(s). These are usually called ‘Child Riders, and are added onto the parent’s policy for a small additional premium. These riders typically expire when the child reaches the age of 20 (some carriers allow up to age 25). New coverage would need to be purchased once the rider expires due to age.
Student Loans & Debts – For the most part, student loans and other debts would be the main reason to purchase coverage upon graduation. The amount of debt a student can chalk up can be astronomical; tuition, room and board, books and various fees can easily total into the six figure realm. Add that on top of dealing with the death of a child, and its not hard to see the ramifications such an event can have on the surviving family members.
Life insurance isn’t just for people who have established their lives. Its for protecting loved ones for the unexpected – and that can come at any age or stage of life. Graduating is a big step in life so make sure its in the right direction and look into life insurance.
About the author: Seth Gowdy is the Sales Manager for Pivot Insurance and holds multiple insurance and securities licenses. He has been part of the financial services industry for nearly 20 years. In his free time he enjoys being outdoors fishing, hiking, and geocaching with his wife and two children. Seth most enjoys helping clients with Pivot’s anonymous life insurance quote process and needs calculators. You can reach Seth at 1-800-651-1953 or SGowdy@pivot.com.