College life is the most relaxed part of one’s life. With not a single care in the world, college students have very different priorities in life and getting life insurance is not one of them. However, it’s important to think about the future and plan for it. Sometimes, Life is bumpy and full of unpredictable events.
Some people are under the impression that life insurance is a hoax. For them, accidents are unlikely events and paying the premium is a financial burden. I would like to narrate an incident here. A couple of years ago, a 20-year-old boy from Mumbai, Dev was coming back home from college. He was studying at Yale. He was a stellar student, his parents were very proud of his achievements.
Everyone spoke highly of his academic prowess. But a tragedy struck. On his way back from college, he had a car accident and lost both his legs and his eyesight. Dev’s parents Mr. And Mrs. Chouhan had to face a really bad time. They had to repay Dev’s student loan along with the medical bills. This tragedy took a huge financial toll on them. A couple of months later, Dev died. Mr. and Mrs. Chouhan was still in mourning when the bank gave them a notice for immediate repayment of the student loan. It was a very tragic time.
People from all over the country rallied in their support and protested against the bank. Public support pressured the bank into giving Mr. and Mrs. Chouhan 3 years’ time to repay the loan. These tragedies are the reality of life and you to be financially prepared to face such situations.
We will now look at the reasons why college students need life insurance policy:
Dependent Parents: Many students have dependent parents who are old and need medical and financial help. A term life insurance policy takes care of the financial needs of the dependent parents. It also provides surplus money to take care of all the miscellaneous expenses as well as support the dependents.
The primary reason behind buying life insurance is to provide cover for people who are financially dependent on you. The idea of life insurance is to make sure that your dependents can provide for themselves even in your absence. It’s no different for college students.Term life insurance on a college student is quite inexpensive in India.
Student Loans: Every year college students take student loans to receive education in the best possible institutions. Every year, many Indian students go abroad for higher education. Student loans amount to nearly 1 million dollars, every year. Many students mortgage their houses to receive student loans.
Sometimes, the bank sanctions the loan only when the students have a guardian or a surety to sign on their behalf. In situations of untimely demise or accident of the student, the surety needs to repay the loan. Sometimes the banks accelerate the loan repayment schedule after sudden death or even ask for a full repayment as soon as possible.
Life insurance helps to repay the entire loan amount and reduces the financial pressure on the guardian of the deceased.
Marriage at a young age: Apart from loans and debts, early marriage and having a child while still in college are major reasons to buy term life insurance. India has a low legal marriageable age, due to which many undergraduates in small towns and villages get married at a young age. More than one-third of all the undergraduate students raise children while attending college. This makes it even more important to have appropriate life insurance cover in place.
Marriage brings with itself the added responsibilities. Therefore, it becomes necessary to get life insurance in college itself to provide for children as well as dependent spouses. Life insurance will take care of the family after an unfortunate incident of death or accident takes place. The insurance money will also provide for the educational and other needs of the children.
Protecting Family Finances: Several families do not take a student loan to finance their child’s education. Parents finance their children through their own hard eared-money or through the savings of a lifetime. Sometimes families max out their credit cards or mortgage their jewellery, houses and other valuables. In the event of a sudden accident or death, the family falls apart completely. At such critical situations, they will need solid finances to fall back on. There is no replacement for the loss of a loved one but one needs money to survive. In the face of such an unfortunate situation, life insurance policy provides the much-needed financial help to repay the debts and build back the lost financial standing.
Planning for an unforeseen accident is morbid and disheartening but it is a sad reality of life. You need to take charge, for your future and for the future of your loved ones. Don’t think any further and buy a term life insurance right away to help secure your financial future.