Homeowners and renters insurance
A new student has more than a car to protect, however. It may be in his or her best interest to obtain a renters policy, especially if there are valuable items around such as a laptop or bicycle. For example, if a student furnishes her own apartment and has electronic equipment, the 10 percent limit provided by her parents’ homeowners’ policy may leave her uninsured. Still, you always have the option of getting a personal property endorsement added to your policy to cover your child’s belongings.
Life insurance
If you haven’t updated your life insurance policy in awhile, it might be a good idea to modify the coverage amounts to account for your child’s tuition. Also, your child may want to purchase a low cost term life policy that would cover basic costs such as funeral expenses. While debt from a federal school loan is forgiven if the student dies, a private loan may not have the same provisions. It’s best to check with the lender to learn if they have debt cancellation. If they don’t, a student can purchase more coverage on a term policy to cover the loan in the event the unthinkable happens.
