There’s another reason to get life insurance most people don’t think of: to pay your student loans if you die
August 27, 2019 by Clint Proctor
According to the Federal Reserve of St. Louis, total student loan debtin the United States has reached over $1.6 trillion. And there are now over 44.7 million student loan borrowers with an average student debt total of $29,900.
If you’re one of the millions of people dealing with student loans, you may wonder what will happen to them in the unlikely event that you pass away before they’re paid off. Will they be forgiven? Or is there a chance that your debt could be passed on to your surviving family members?
First, it’s important to identify what kind of student loans you have. If your student loans are federal, you can rest easy. All federal student loans are forgiven at death by Total Death and Disability Discharge.
However, your private student loans are not covered by this program. So do you need life insurance to cover your private student loans? Once again, the answer will depend on your situation. Here are three questions that could help you decide.