Cosigning student loans – do you need protection?

I wish I could take credit for this, but this idea came up in a conversation between one of my staff members and a client…

Have you cosigned a student or other loan for one of your children, or do you plan to? Would you be stuck with a really large debt if something happened to your child?

The case we’re working on involves parents who are about to cosign student loans for their daughter that will likely come to over $150,000. They’ve decided to look into life insurance covering their daughter so that they will be able to pay the loans in full in the event of an untimely death.

There are other advantages too. The daughter will be able to continue the life insurance if she chooses to, even if she develops a medical condition later on. And because we are insuring an 18-year-old, the rates are very low.

If you are in a similar situation, then we should talk.  Just give me a call at 589-4477.

Next steps:

We offer insurance products through Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001, and other companies.

Albion Agencies, Inc. is a licensed insurance agent/broker only in the State of New York.

The information in this post is general in nature, and geared toward insurance conditions in Western New York.  As always, you should speak with an insurance adviser to determine your specific insurance needs.

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