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Co-signing and Insurance

Question: I'm divorced with 2 children who have college loans on which I cosigned. I want to make sure that if anything happens (god forbid) that I don't end up paying for those loans. They total about $50,000. Should I buy term life insurance for them? I know this sounds cruel, but I'm about to retire from the teaching profession on a limited income. Christine

Answer: I answered a similar question a couple of weeks ago on the air. I do think having your children buy cheap term life insurance to cover the student loan debt in case of tragedy makes financial sense. It isn't cruel, either. It's just practical.

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Chris Farrell is the economics editor of Marketplace Money.

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