Stand up for nonprofit news & help us reach our $100,000 goal! GIVE NOW
Ask Money

Co-signing and Insurance

Chris Farrell Feb 27, 2008

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.

As a nonprofit news organization, our future depends on listeners like you who believe in the power of public service journalism.

Your investment in Marketplace helps us remain paywall-free and ensures everyone has access to trustworthy, unbiased news and information, regardless of their ability to pay.

Donate today — in any amount — to become a Marketplace Investor. Now more than ever, your commitment makes a difference.