Life Insurance for Graduate Students: What You Need to Know

When you decided to attend graduate school, chances are that life insurance wasn’t at the top of your list of things to do.

However, as a full-time student, you might be surprised that life insurance for graduate students can be a smart move. As an older student, you might have a family or dependents who rely on you. Or you might have a cosigner on private student loans.

It can make sense to look for a life insurance policy as a graduate student, no matter your situation. Here’s what you need to know.

Why graduate students need life insurance

If you’re not making money as a grad student, you may think you’re off the hook for a life insurance program. However, life insurance is part of overall financial wellness, and that includes graduate students who might not realize the issues that can crop up.

Here are some situations where it can make sense to look into life insurance while in graduate school.

Cosigner

When you have federal student loans, your debt is discharged in the event of your death. Private student loans, on the other hand, are another matter. Many cancel your debt if you pass away. But in some cases, the lender might come after your estate to reimburse the remaining student loan debt.

If you have a cosigner for your private student loan, they are liable for your debt if you cannot repay it. If you die, your loved ones who generously helped you out could be responsible for repayment. Life insurance coverage can provide a benefit that would allow your cosigner to pay off the.

Dependents

Life insurance is a no-brainer if you’re a graduate student with a family or have dependents. What will your partner do for child care if they have to work after you pass? How will your family cover their costs and meet their needs?

It’s best to talk to a life insurance company about coverage options, even if you don’t have a high income or you use fellowships to help you get through school. Life insurance coverage can help your partner and your family get a good start in life, even if you aren’t there.

Life insurance costs more as you age

Getting student insurance can make sense if you want a better rate. Two of the biggest factors in life insurance premiums are age and medical history. The older you are, the higher your chance of having a health condition, and the more you’ll pay for life insurance. But term and whole life premiums can be cheaper when you’re younger.

Getting a life insurance policy now can make a big difference later in terms of cost savings.

Term life insurance coverage needed for graduate students

As a college student, even one in graduate school, you may feel overwhelmed thinking about your insurance needs. Many different types of insurance are available to consider, from dental insurance to health insurance coverage.

However, health care coverage is a little easier to deal with because you often have plans and comparisons to consider. Plus, as a grad student, the Affordable Care Act gives you access to a subsidy to help you pay.

Think about your budget, debt balance, and student loan repayment timeline when considering how much life insurance coverage you need.

One rule of thumb for new students is to think about how long they expect to have the debt and how much it will cost to pay it off. For example, if you’ll finish with $100,000 total in student loan debt, consider getting at least $100,000 in coverage. If you have a repayment period of 25 years, look into a term life insurance policy that’s 25 or 30 years.

Also, consider your loved ones and dependents' needs and get additional coverage to make sure they’re well cared for.

Cost of term life insurance

A term life insurance policy generally costs less than whole life. Generally, whole life insurance is a bad idea if you have student loans. But a term policy is a good option.

Depending on your eligibility, including your age, health and gender, you could pay as little as a few dollars a month for a term life policy. Check with your insurance company to determine what your options are.

For instance, a 25-year-old female could get $250,000 for 20 years of life insurance coverage for a little more than $14 per month, while a male could get that coverage for a little more than $17 per month.

Depending on your situation, that amount might be enough to pay off your student loans and provide for your dependents. If you think you might need more, you can ask for additional information and run some other numbers to see what makes sense in your circumstances.

Where to find the best term life insurance options for graduate students

Depending on your school, you might find student insurance through the college. Some schools offer a student health insurance plan and life insurance options. Even international students might benefit from these programs.

If your college doesn’t offer student insurance programs, compare quotes from other companies. Start by finding out if your auto or renters insurance company provides a discount for adding life insurance.

Then, compare different offers, including those that claim to require no medical check. You can get a waiver on the life insurance medical exam in some cases, especially if you’re younger.

Finally, look online to get access to various life insurance quotes with the click of a button.

Frequently Asked Questions (FAQs)

Get a quote for term life as a graduate student

If you want to make sure your eligible dependents or other loved ones are financially cared for if you pass, it can make sense to get life insurance. Get a quote for life insurance and see how affordable it is to protect your family.