Any parents tempted...

CountingDown
Wed, 14 Dec 2011 15:51:17 +0000

^^the scenario in which it makes sense (to me) for a parent to have insurance on an adult child is when the parent is liable for debt incurred on behalf of the student (i.e, a parent co-signer on a loan). Stafford and Perkins loans are forgiven if the student dies. PLUS loans where the parents are co-signers are not. Another reason is to have burial funds for a young adult.

My sister just lost her 24 yo son in a motorcycle accident. She had a small policy on his life which will cover final expenses. His credit card and vehicle loan balances were forgiven at his death since there were no co-signers.

S1 has been discussing his employee benefits package with us and we’ve discussed the differences between employer-provided term life and his own policy and the timing of getting same.