Debt-Defying Acts

MESA, ARIZ., April 26, 2016 (GLOBE NEWSWIRE) -- Young and healthy individuals with a mountain of student loan debt often disregard the need for life insurance, or at best think it is something they can postpone. However, youth, good health, and high debt are factors that make the argument for having life insurance more, not less, important.

The main purpose of life insurance is to provide a death benefit to beneficiaries; however the death benefit can be used to pay off debt, including outstanding student loans. Federal student loans are forgiven if the student dies, but if the loan is from a private lender the co-signer is held accountable for the remaining sum, plus interest.1

An estimated 1.4 million undergraduate students took out private loans in the 2011-2012 school year and 90 percent of private loans involved a cosigner.2 The estimated number of parents and grandparents who cosigned for student loans to help a family member attend college has tripled since 2005.3

According to an article in Time Magazine:
Americans ages 60 and over collectively owe $36 billion in student loans. About 5% of the $85 billion delinquent student loans in the U.S. is owed by borrowers ages 60 and over, and another 12% of the total is the responsibility of Americans ages 50 to 59. In some of these delinquent situations, Social Security checks are garnished in order to pay off student loans.4

Even if you do not have a student loan, purchasing whole life insurance when you are young and healthy has other advantages such as:

  • Whole life insurance is typically less expensive when purchased at a younger age if you are in good health.
  • It provides coverage for your entire life at fixed, cost-effective payments as long as payments are paid.
  • It will accumulate cash value as you make payments, which is guaranteed.
  • Death benefits are guaranteed as long as payments are paid.
  • If you surrender your whole life insurance, the cash value that has accumulated will be paid to the owner.

"Life insurance is not just about a death benefit to help provide for someone you love after you are gone, it's an important part of having a balanced and strategic financial plan in place," said Cynthia Tidwell, president/CEO of Royal Neighbors of America, one of the oldest women-led life insurers in the U.S. "April is Financial Literacy Month and April 6 is Financial Fitness Day. Just as good physical health involves several factors, adequate life insurance should be a part of your financial fitness plan."

Royal Neighbors of America is one of many life insurers and financial institutions that promote financial awareness and education, particularly during Financial Literacy Month in April and Financial Fitness Day on April 6. In addition to life insurance, the 121-year-old organization provides online calculators for topics such as savings, retirement, insurance needs, and more at
Cutline: Cynthia Tidwell, president/CEO of Royal Neighbors of America. (High resolution photo available for download here.)

About Royal Neighbors
Royal Neighbors of America, one of the nation's largest women-led insurers, empowers women to meet the needs of their families with annuities and life insurance products such as whole life, simplified issue, and universal life. Royal Neighbors was founded in 1895 and is headquartered in Rock Island, IL, with a branch office in Mesa, AZ. For more information, visit or call (800) 627-4762. Royal Neighbors is licensed in 43 states and the District of Columbia and not all products are available in all states.

W2016-2; Rev. 4-2016
1 Debt After Death, The Atlantic, July 30, 2015, Gillian B. White, online article, PDF on file.
2 Debt After Death, The Atlantic, July 30, 2015, Gillian B. White, online article, PDF on file.
3 More seniors trapped in children's student debt, The Columbus Dispatch, March 11, 2015, Mike Wagner and Jill Riepenhoff, online article, PDF on file.
4 60 and still not out of student loan debt: Seniors Facing $36 Billion in College Loans, Time Magazine, April 3, 2012, Brad Tuttle, online article, PDF on file.

A photo accompanying this release is available at:

CONTACT: Sally Marks (480)970-2521

Source:Royal Neighborsof America