Life Insurance

[C_BryantDDS]

Hey everyone,

With all the talk of finances and student loans I was thinking that I'd suggest that everyone look into taking out life insurance on themselves to ensure that your family isn't burdened with your student loans should anything happen to you. I know it's not something that we usually think of and I wouldn't have myself if I hadn't read an article about a girl who was killed in a car accident and her parents ended up losing their house because they couldn't afford to cover her student loans. I recently took one out on myself for $500,000 for 30 years (plenty of time to get loans paid off) and it's only $27 a month.

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[DMDDDSHopeful]

Hey everyone,

With all the talk of finances and student loans I was thinking that I'd suggest that everyone look into taking out life insurance on themselves to ensure that your family isn't burdened with your student loans should anything happen to you. I know it's not something that we usually think of and I wouldn't have myself if I hadn't read an article about a girl who was killed in a car accident and her parents ended up losing their house because they couldn't afford to cover her student loans. I recently took one out on myself for $500,000 for 30 years (plenty of time to get loans paid off) and it's only $27 a month.

You could save that $27/mo as well by not having it consigned.

 

[C_BryantDDS]

Couldn't you ou save that $27/month by not having your parents co-sign?

As far as I know if anything happens to you your student loans go to whoever would inherit your assets i.e. your parents / husband / wife / grandparents / kids, etc. if anything were to happen to you since it's not a loan that you can file bankruptcy over or forclose like a mortgage.

 

[DMDDDSHopeful]

As far as I know if anything happens to you your student loans go to whoever would inherit your assets i.e. your parents / husband / wife / grandparents / kids, etc. if anything were to happen to you since it's not a loan that you can file bankruptcy over or forclose like a mortgage.

Lol sorry I edited my comment. Look again. They cannot go after your relatives.

 

[C_BryantDDS]

View attachment 214261

You could save that $27/mo as well by not having it consigned.

Lol sorry I edited my comment. Look again. They cannot go after your relatives.

Sorry, just saw that! I believe that's just for some federal loans. Some of my undergrad loans are private and figured would be better off protecting my parents just in case. Also with recent issues with Sallie Mae and changes in student loans I figured better safe than sorry! Also my parents have consigned some of my previous loans and may consign some future ones as well.

 

[stoopidmonkeycatdog]

Your debt is your debt. After you die it does not transfer to your children, parents, or significant others. That's not how it works.

If your parents die and someone calls regarding debt, know that you legally don't have to pay they're just giving a last ditch effort to get their money back.

 

[Typical Average Student]

Aside from this... all dental students who pay membership dues to ASDA get free life insurance and disability insurance, you just need to sign up.

 

[Likkriue]

It depends if the debt is private or not. Private loans most of the time require a co-signer no matter what.

 

[DMDDDSHopeful]

Aside from this... all dental students who pay membership dues to ASDA get free life insurance and disability insurance, you just need to sign up.

Great to know! Thanks for sharing.

 

[Likkriue]

Aside from this... all dental students who pay membership dues to ASDA get free life insurance and disability insurance, you just need to sign up.

Does that allow us to waive the insurance requirement for schools?

 

[osker246]

Does that allow us to waive the insurance requirement for schools?

No. Life insurance =/= health insurance.

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[Likkriue]

No. Life insurance =/= health insurance.

Sent from my XT1575 using Tapatalk

Oh right. Rats.

 

[DOC YANKEM]

Oh right. Rats.

Sounds like someone from New York City.

 

[Alpha Centauri]

Your debt is your debt. After you die it does not transfer to your children, parents, or significant others.

I can die happily now

 

[DOC YANKEM]

I can die happily now

Praise our Lord and savior Jesussss

 

[redhotchiligochu]

Don't cosign. If you are the sole signer, you parents or spouse or children will not be responsible.

HOWEVER, if you already have assets of your own, e.g. car, house, 401k/IRA, it doesn't hurt to take life insurance. Say you have $50k to your name and you pass away with $300k in loans, your assets will be sold in an estate auction to pay off your loan. However, if you did have $500k life insurance, you could technically pass on $250k ($500k insurance payout + $50k asset - $300k loans) to whoever your benefactors are.

 

[MD Financial Services Scott]

Life insurance is so cheap when you are young and healthy....$500k for most residents can be bought for $10-$15 per month. When in doubt spend what amounts to 3 cups of Starbucks and be done with it.

 

[786783]

interesting point.

 

[I-hate-alginate]

But if you refinance your loans, then your family would have to pay it back, yes...no?

 

[Michael_Scott]

glad we got this stuff cleared up!
I was about to buy life insurance till i scrolled down...lesson learned.

 

[CareerNumTwo]

"Private lenders aren't bound by any federal requirements to help borrowers -- or co-signers -- facing financial hardship, even when it's a parent whose child has passed away, says Deanne Loonin, an attorney at the National Consumer Law Center. Any loan forgiveness is up to the discretion of an individual lender."

Grieving parents get hit with $200,000 in student loans

Sad. What everyone else said though. Don't take out private loans if you can possibly help it and, if you do, don't have your loan consigned. I recognize this is easier said than done. I did both but it was my brother on the dotted line. He's glad I paid off that loan first...

 

[allantois]

Eh, I'd be more concerned marrying someone with that much debt.