Quote:
|
So, if I decided to keep a policy, I would only need to worry about the cost of the funeral, and a $15,000 policy would cover that just fine. Does that sound correct?
|
Unfortunately, no. Your student loan must be paid before your parents will get the money. (They're just not responsible for the student loan if your assets can't cover it.)
Here's what you have to do. Calculate your net worth: Add up your checking and savings accounts, the value of your car and any other assets you have, and then subtract all your debts including student loan, car loan, whatever.
Then subtract the estimated cost of the funeral from that number. Whatever you have for a shortfall is theoretically how much you need in life insurance. If you have a positive number, you do not need insurance.