Wheeling , IL (PressExposure) May 19, 2010 -- AccuQuote, a leader in providing term life insurance quotes to people across the United States, reveals three reasons recent college graduates need life insurance protection. The multi-carrier life insurance brokerage firm emphasizes the importance of life insurance at a young age.
In its simplest form, life insurance serves as income replacement for lost loved ones. However, income replacement is not the only purpose it serves. In fact, life insurance can play a positive role no matter what stage of life a person is in.
"Let's face it, after receiving that diploma, most college graduates think about buying a new car or getting their own apartment, not buying a life insurance policy. However, there are many benefits to buying term life insurance as a young professional, even those who don't have financial dependents," says Byron Udell, founder and CEO of AccuQuote.
AccuQuote reveals the following three reasons recent college graduates need life insurance protection:
- If someone is a co-signer on a private loan - If a recent college graduate has a co-signer on a private student loan, they need life insurance. The reason is simple. Unlike federal loans, private loans still requirement repayment upon the signer's death, which means the co-signer then becomes 100 percent responsible for paying off the remaining balance. A life insurance policy, in at least the amount of the loan would allow the co-signer to pay it off without financial burden. "Just remember to assign the co-signer as the beneficiary on your policy," says Udell.
- Lock in insurability - "Term life insurance rates are cheapest when you're young and healthy," says Udell. "If you develop a chronic illness later on in life, some life insurance companies will deem you 'high risk' or 'uninsurable,' plus rates naturally go up with age." Recent college graduates who purchase a life insurance policy now guarantee their insurability for life.
- Term life rates are near record lows - "Currently, term life insurance rates are near record lows, so even if you're a recent college graduate, not making a lot of money, you'll probably be able to afford a policy," says Udell. "If you plan on getting married or having children who will be financially dependent on you, there's no need to wait to buy a policy that may be more expensive later on in life." The term life rate that a person pays now will remain the same for the duration of the term.
"Even if life insurance isn't the first thing you buy after you graduate, it should still be on your mind," says Udell. "You can ask a licensed life insurance professional, like the ones at AccuQuote, for more tips and advice."