What Is the Best Life Insurance For College Students? | Should You Buy It In 2022?

Written By Licensed Agent Sa ElMay 3, 2022

Regardless if you are aware or not, student loan debt has become a significant issue for almost all Americans. The amount of debt doesn’t seem to be decreasing and more people are hoping their debt gets erased by the government. 

But did you know: 

That life insurance is the easiest way for a co-signer to protect themselves if the student dies.

This post will discuss if college students need life insurance, why you should consider student life insurance, and how to find coverage fast.

life insurance for college students

What Is The Average Cost Of Life Insurance For College Students?

The average monthly premium for a healthy 26-year-old college student is around $15 per month. That's about the same as a Netflix subscription or a couple of lattes. However, keep in mind that the life insurance costs for college students will vary depending on a number of factors, such as the type of life insurance policy, the coverage amount, and the length of the term.

To get a better idea of your rates you can simply use our free quote tool below to check out your rates without having to provide any contact information:

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The final insurance policy premium for any policy is determined by the underwriting insurance company following the application.

What Is The Best Life Insurance For College Students In 2022?

The best life insurance for a college student will be an instant or no exam life insurance policy. This is because as a student, the last thing anyone wants to do is sit around trying to schedule an exam or fill out long forms. A no-exam life insurance policy offers a ton of benefits to a college student.

The ideal life insurance for a university student is an immediate or no-exam life insurance policy. This is because, as a student, the last thing anybody wants to do is plan an exam or fill out lengthy forms. A college student may benefit greatly from a no-exam life insurance policy.

When considering life insurance as a college student, it is important to consider the following factors:

  • The amount of coverage you need. This will depend on your age, health, and financial obligations.
  • The length of time you will need coverage. This will depend on how long the student plans to remain in school and whether they plan to continue their education after graduation.
  • The type of coverage you choose. This will depend on whether you decide to go with a no exam term policy, a fully underwritten term life insurance policy or a permanent life insurance policy.

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What Are The Types Of Life Insurance Policies Available To College Students? 

There are two main types of life insurance policies available to college students: term life insurance and whole life insurance. Term life insurance gives you coverage for a set period of time, typically 10-30 years. Whole life insurance, on the other hand, covers you for your entire life. Both types of policies have their own pros and cons, so we broke each one down below to give my more information.

Term Life Insurance

Term life insurance is generally much more affordable than whole life insurance, making it a good option for budget-conscious college students. It can also be a good choice if you only need coverage for a specific period of time, such as while you're in school or during your early working years. The downside of term life insurance is that it doesn't build cash value, so you won't have anything to show for it if the policy expires before you pass away.

Whole Life Insurance

Whole life insurance, on the other hand, is more expensive but provides greater benefits. It accumulates cash value over time, which you may borrow against in the case of an emergency. It also gives permanent coverage, so you won't have to worry about your policy running out at some point in the future. The disadvantage of whole life insurance is that it necessitates a larger initial investment and because the policy builds cash value does not imply you should use it since all of its money would be depleted leaving you with a dead policy.

Do College Students Need Life Insurance?

Yes, college students need life insurance. While they might not find insurance as an essential topic on their list of things to get done, it’s very crucial for them to have. Student loan debt, protecting their dependents, and protecting parents from a substantial financial burden are great reasons students should get covered. Below we review those reasons in more detail:

3 Reasons You Need To Consider Student Life Insurance

Student Loans

The average student loan debt per borrower is over $30,000. Because of this, obtaining some type of student loan insurance is super important. 

Unlike federal student loans, private student loan debt will not cancel if the student dies before paying the loan off. Private student loans almost always require some type of co-signer, who will be held responsible for paying off the loan if the student dies while in school.

There is even a possibility that the lender will request immediate payment-in-full if the student dies. Getting a life insurance policy that will more than cover the college term (10 years) and enough coverage to cover the loan amount will protect any co-signer on a student loan. 

It Protects The Parents

There are multiple ways a parent can fund their child’s education, such as a personal loan, a home equity loan, or a 401k.  If the student dies before they can pay off their debt, their parents will still be responsible and could lose their home or ruin their credit. No one likes to pay for something they won’t ever use (except for gym memberships), so there really isn’t a reason to go without life insurance for your student.

To Protect Your Dependents

One thing most people don’t consider is the fact that some college students have kids and need to protect their well being. It doesn’t matter if you are single or married; if you are a student and have any dependents, you need life insurance. Life insurance would protect your spouse and dependents by paying off the student loan debt, covering any final expenses, and providing the family with financial stability.

What Factors To Consider When Choosing Life Insurance Coverage

As a college student, there are really only three things you need to think about: how much coverage you need, how long you need the coverage for, and how much you can afford to pay

The first thing to consider is how much coverage you need. This will depend on your age, health, and lifestyle. If you're young and healthy, you should probably get as much coverage as you can afford for the longest term length. This way you lock your super low premiums in for a long time. Someone who is older or has health problems are going to pay more on a monthly basis for coverage. And if you have a family or dependents, you'll need more coverage than someone who doesn't.

The second thing to take into consideration is how long you will need the coverage for . If you're only looking for coverage while you're in school, then a shorter term policy will be just fine. But if you want coverage that will last until retirement, then you'll need to get a longer term policy.

The final thing to consider is how much you can afford to pay. Life insurance premiums can be expensive, so it's important to shop around and compare rates from different companies. Also, be sure to read the fine print and understand the terms of the policy before you buy it.

How To Shop For Life Insurance On A College Student?

Determine Who Should Own The Policy

The first thing we need to figure out is who should be the policy owner, your parent, or you? The policy owner plays a crucial role because they are the only people who can make changes to the policy. They can do things like change premium due dates, remove or add beneficiaries, and cancel the policy.

Who should own the policy is going to depend on: 

  • The student’s current age
  • If the parent has co-signed a student loan
  • If the student has any dependents 
  • Does the student have a spouse? 
  • Is the student single?

A student should own their own policy if they have dependents or a spouse. However, if you are single and still able to go on their parent’s policy, that might be the best option. If your parent has co-signed student loan debt, they might want to be the policy owner because only the owner can make changes to the policy.

Calculate How Much Coverage The Student Will Need

As a parent, if you will be the insurance policy owner, it’s crucial that you get enough coverage to cover the total student loan and choose a reasonable term length (at least 10 years.) This will ensure that your child is actually protected for the length of time they could be in school. 

As a student, if you will be the owner of your own policy, it’s best to consider current or future situations. If you are married or have dependents, be sure you get enough life insurance to cover your student loan debt and protect your family for at least 10 to 20 years. This is usually calculated by multiplying your annual income by 10, 15, or 20. The industry standard is 10X your income, but I always recommend up to 20x your annual salary if you can afford it.

Get A Few Anonymous Quotes & Comparison Shop

Once you guys understand who will own the policy, how much coverage you will need, and for how long, it's time to start comparison shopping. 

It's effortless to get life insurance quotes online; however, be sure that you are giving the least amount of information while you are in the quote stage. You just need an idea of what your pricing could be, and you don't need to get called by 1000 agents just because you want to look at pricing.

Be sure you compare apples to apples; the policies’ term lengths and coverage amounts should be the same. Once that matches, it's time to look at the policy's benefits and features by checking out some reviews. 

Read Reviews To Find The Best Life Insurance Company

Once you have some rates from the top competitors, it will be time to read reviews about the company. These should be customer reviews and product reviews like this one for Bestow, that details a specific company and its product. Doing this step educates you more on the product and allows you to get a better idea of additional features that might be offered with your product. For example, some companies include an accelerated death benefit with their policies, while others may charge extra for it.

Should You Use Life Insurance To Pay For College?

Suppose you have received life insurance proceeds as a surviving spouse or through an inheritance. In that case, paying for a student’s college or your own college may be a solid idea. The best thing about life insurance is that 98% of the time, it’s going to be tax-free, and it gets to avoid probate court.

Once you receive the funds, there isn’t any limitation on how the funds can be used. If you are trying to avoid taking on additional debt, then the funds from life insurance could work. However, according to several personal finance experts, it’s essential to have a plan before you start investing your life insurance proceeds

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How To Apply For Life Insurance As A College Student Online?

If you are a parent and have decided to help your college student take on student loans, having a life insurance policy on them is a no-brainer. However, a student with dependents or a spouse may find it best to have a policy of their own. 

Either way, there isn’t any reason to wait around to get covered; you can click here or on any of the above buttons to get instant quotes and to get the process started.

Frequently Asked Questions


Does a college student need life insurance?

Yes, life insurance is essential for college students because it allows parents to cover outstanding debts if they die. Most families have to take out loans to cover their student’s education. It’s best to be financially protected when deciding to be a co-signer on any type of debt.

How much is insurance for college students?

The average age of a college student is 26 years old. Considering that, the average college student can get a 10 year $250,000 term life insurance policy for less than $12.00 per month. 

How do I get insurance while in college?

The best way to get life insurance while in college is to get added to your parent’s plan (if you are 18 or under) or just purchase your own policy online if you are over 18. Several companies offer instant issue life insurance


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