Almost everyone knows someone who’s paying back a student loan. According to FinAid.gov, the national student debt total recently surpassed $1.3 trillion. That sounds like a powder keg that could rattle the economy the way the housing market collapse and mortgage crisis did seven years ago.
The presidents of Oakland University and Eastern Michigan University
were recently summoned to Lansing to explain large tuition increases.
8.48 percent and 7.8 percent respectively. I believe one of the hot
topics of the upcoming election will be the exorbitant cost of higher
education and the enormous student debt load that young adults are
forced to carry.
I don’t pretend to have a quick-fix solution for the student loan
crisis. But I am seriously concerned that it will create an unfortunate
When young adults finally complete school, they have to start repaying
their student loans. Unless they’re living in their parents’ basement,
they also have housing costs. And regardless of where they live, there
are car payments and all the other monthly bills that go along with
becoming an adult.
Many are also getting married and starting families, so they have
significant financial obligations in addition to school loans. And even
though it’s another expense, as an adviser, I think it’s very important
for a young family to have life insurance.
Sadly, it’s one of the most overlooked aspects of financial planning.
Many young people feel invincible and give no thought to life insurance.
Nothing bad is ever going to happen to them.
True, some do have insurance through their employer, but in today’s
world people frequently change jobs and there can be gaps without
That’s why I believe it’s vital to actually own your life insurance
rather than rely on your employer. Young people, especially those
starting a family, need to make certain their loved ones are protected
and loans are repaid in the event of a life ending tragedy, especially
if there are children involved.
September is Life Insurance Awareness Month and I want to make certain
that young adults take note. Life is all about choices. For example, do
you really need the newest version of your favorite cell phone the very
day it’s released? Is the fastest Internet speed worth paying a higher
price? Do you really need a $3 dollar cup of coffee every day?
People need to make financial choices all the time. Unfortunately, too
many of them make poor financial decisions or simply fail to look at
reality. The difference with young adults is that they often have
staggering student loan obligations in addition to everything else.
On the local news, you often see or hear about a fundraiser to help a
family after a tragic loss. It’s nice to see so many big-hearted people
willing to help them pay bills or perhaps fund a young child’s future
But responsibility comes with financial obligations, and if you signed
for a loan or have children to house and educate in the years ahead, you
owe it to your family to review your life insurance and find a way to
include the cost in your budget.
Unaffordable? Consider a little budget juggling to free up enough money
to cover insurance premiums. You’ll not only be buying life insurance,
but also the comfort of knowing you have additional protection for the