Life insurance
Cosigned student loans and life insurance: what happens if you die
Federal student loans are generally discharged at the borrower's death, but private loans vary. Cosigners can be left owing the balance, so check each loan's terms.
What to check
- Whether each loan is federal or private.
- Whether the lender discharges the loan if the borrower or the cosigner dies.
- Whether a death of the borrower makes the cosigner responsible right away.
- The balance and the monthly payment.
Where life insurance fits
If a cosigner could be stuck with a balance, a term policy for the length of the loan can protect them. The amount can be matched to the balance.
Have this ready when you call
- Each loan's lender and balance
- Whether it is federal or private
- The loan agreement
Common questions
Is the cosigner released after a death?
Some lenders release the cosigner at the borrower's death and some do not. Read the loan agreement.
Is it worth insuring a small balance?
That depends on your finances. We can help you decide.
Related answers
Rather talk it through?
Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
- Licensed insurance help
- No guaranteed eligibility, pricing, or availability
- Educational starting point
Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.