Life Insurance & Student Loan

I cannot pay my student loan. What if I took out a life insurance policy and promised to make the lender my beneficiary?

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Insurance
Bill's Answer: Bills.com Resident Expert

You are asking me to speak on behalf of Wells Fargo, which I cannot do.

Speaking hypothetically, I do not see any legal reason for Wells Fargo to say no to your offer of making the lender your life insurance beneficiary, other than the fact that if you fail to pay for the insurance, what recourse will Wells Fargo have against you when you are dead? Wells Fargo could sue your estate, but if you die with no assets then Wells Fargo will be left with nothing.

Therefore, your offer of making the lender of your student loan the beneficiary of your life insurance has theoretical upside, but it comes at a significant risk to the lender.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

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