Financial planning for the future may seem overwhelming, especially when you are still burdened by student debt.

In the realm of insurance, there is a potential solution that could alleviate those worries and provide financial stability and security long term.  

By contributing to life insurance, individuals can build up a cash reserve to be used to pay off loans or other debts. Co-signers will also be protected in the event of the unexpected. 

Paying Off Debts 

Life insurance provides individuals with the ability to build up a cash reserve that can be tapped into in times of need, such as for paying off student loans or other debts.  

This cash value can grow tax-free, providing individuals with a powerful financial tool to lessen their debts and become more financially free.  

As individuals progress in their careers and their financial situation improves, they can adjust their life insurance policy as time goes on. Insurance policies inevitably provide individuals with peace of mind knowing they and their loved ones will be financially stable. 

Co-Signers & Student Debt 

Life insurance ensures financial protection for your family’s future. In the same way, life insurance can settle an outstanding student loan debt in the tragic event of your passing. Your assets and liabilities become part of your estate when you pass away. Your student debt can be included in that. 

Federally held student loans do not pass on to family members if there is no cosigner upon someone’s death, whereas privately held loans do.

If you have a federally held student loan with a cosigner, then your loan obligation is transferred to your cosigner in the event of passing. The life insurance policy provides them with the funds necessary to settle the debt, ensuring they aren’t financially burdened.  

How To Get Life Insurance 

At Prosper Insurance, our life insurance agents will help individuals select the insurance policy that best fits their ideal situation. We understand everyone’s situation is different. That’s why Prosper works with 7 carriers to match you with the best life insurance policy. 

Student debt can cause stress especially as you start planning to buy a house or starting a family. Life insurance provides peace of mind knowing that your loved ones will be financially secure if the unexpected happens. 

If you’d like to learn more about life insurance and student loan debt, click here to book a consultation with our life insurance experts!