<p>^^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). <em>Stafford and Perkins</em> 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.</p>
<p>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.</p>
<p>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.</p>