Considering the massive cost of a college education in America, do you ever wonder how much debt would be left behind in the event that a college student or university graduate passed away?
Think about it: Leaving Mom and Dad with thousands of dollars in unpaid loans, on top of losing a child, would be burdensome. Life insurance provides the perfect solution for making sure those student loans and, more importantly, the families, are protected.
Auto-Owners Life Insurance Company has several options that will help give families peace of mind when taking out these weighty loans. Products and services such as Level Term, Five Year Simplified Issue Term, universal life and even collateral assignment options give families the resources to fit any of their coverage needs.
All of the Auto-Owners Level Term policies can be converted into a permanent product. This means that after those student loans are protected and paid off, the student could convert the policy to permanent coverage and continue covering all aspects of their daily life. With universal life, coverage can be increased or decreased dependent upon the needs of the loan. This is a great option for a growing family that is still paying off loans and needs additional coverage for a new home or vehicle.
In addition, a collateral assignment will allow students to designate the loan distributor to be paid first, in the event of their death. This relieves the beneficiary of any duty to pay off the loan, and they receive the remaining death benefit.
In the event of a student or graduate dying, life insurance can be the first thing to help with final expenses and debt obligations. Start thinking of life insurance as more than just a funeral policy. Consider it a saving grace for families that face education debt in addition to their loss.