What is Tuition Insurance?
· Insurance that can cover and provide reimbursement of financial losses for students who are forced to leave school for unexpected medical reasons, such as serious injury or illness, chronic illness, and mental health conditions.
· Most insurance plans can refund expenses such as tuition, housing, academic fees, and deposits
· Estimated cost is $200 in premium for every $10,000 worth of coverage
· Offered by select insurance providers, and even some schools offer it themselves
*Pandemics are typically excluded from the policies, but this year companies may be making exceptions – Likely “You have to become ill, you have to have a positive diagnosis, and your doctor should recommend you leave school” – Quoted by John Fees, co-founder of GradGuard, a tuition insurance provider.
When does it not provide coverage?
If a student chooses to withdraw from school voluntarily, perhaps due to how classes will be taught (virtually) or for other COVID-19 related reasons, they will not get their money back.
What steps to take when considering purchasing tuition insurance?
· Take a close look at the school’s refund policy. Experts warn many colleges don’t provide refunds after the first few weeks
· Consider a few likely scenarios that could occur to the student forcing them to potentially withdrawal from school. Students with pre-existing conditions are eligible for the plan.
· Explore the type of insurance that is being offered by the school, or by an outside provider and analyze the costs.
· Read the fine print!
· Review the cost vs. the benefit to determine if appropriate to purchase