Why College Students Need Life Insurance

Life insurance might not be the first thing on a college student’s mind, but for many, it should be. While it’s often thought of as a product for older adults with families and mortgages, the truth is that students can also benefit from having a life insurance policy. Whether it’s to protect loved ones from unexpected debt or to lock in lower premiums early in life, getting coverage while you're young can be a smart financial decision.

How Life Insurance Benefits College Students

While life insurance might not be needed for every student, there are several real-world situations where it makes sense to have (and could even be essential).

To Cover Student Loan Debt

Not all student loans disappear if something happens to the borrower. Federal student loans are typically discharged upon the borrower’s death. However, private student loans may not be, and if a parent or loved one co-signed the loan, they could be held responsible for the remaining balance. Life insurance ensures that your loved ones aren’t left with unexpected financial burdens.

To Protect Your Spouse and Dependents 

Many college students—especially graduate students—may be married or have children. If your family depends on your income (or your future potential income), life insurance can help protect them financially in the event of your passing. Coverage can help replace lost income, cover child care, or even pay for your spouse’s education or career transition.

To Lock in Lower Premiums Earlier

Even if you don’t have financial obligations today, buying life insurance when you're young and healthy can save you money in the long run. Premiums are generally much lower when you’re in your 20s, and securing coverage early can protect against future health changes that might increase costs or limit options.

To Satisfy Legal or Financial Requirements

In some cases, students may be required to carry life insurance (for example, when securing a business loan, participating in a study-abroad program, or joining the military). Having a policy in place can satisfy those requirements while also providing peace of mind.

Best Life Insurance Options for Students

Choosing the right type of life insurance doesn’t have to be complicated. Here are the most common and practical options for students:

Term Life Insurance

Known for its affordability and simplicity, term life insurance offers coverage for a set period, typically between 10 to 30 years. It’s an ideal option for students looking for low-cost coverage to protect against specific financial risks, like student loans or temporary family obligations.

Whole Life Insurance

While more expensive than term life insurance, whole life insurance offers lifelong coverage and builds cash value over time. This may be a good fit for students looking to lock in lifetime protection early or initiate long-term financial planning.

Group Life Insurance 

Some colleges or graduate programs offer optional group life insurance coverage through the school or employment. While these policies are usually limited in value, they can be an easy and low-cost way to get some coverage in place.

Protect Your Future with SelectQuote

Life insurance is more than a policy: it’s a foundation for your future. Whether you’re looking to protect loved ones, secure low premiums early, or meet financial obligations, SelectQuote can help you compare top-rated carriers to find the right coverage at the best price—all in as little as 15 minutes.