According to a recent study, 48% of students and their parents think they may need to withdraw from school before graduating.
Paying for your son or daughter’s college is a big financial responsibility. With the cost of tuition, the option of adding college tuition insurance may seem like an afterthought. Is college tuition insurance really worth it?
Most college students are young, energetic and full of life. But what would you do if your son or daughter suddenly falls ill? Has an accident on campus? What if their health is such that they will need to withdraw from school altogether?
These are just a few situations where tuition insurance can make a huge impact. Often referred to as tuition refund insurance, this is a type of security where you get reimbursed for the non-refundable tuition in instances when your child needs to leave school before the end of the school year.
“After a certain point in the semester, most universities refund only a partial amount of tuition paid by students and their families. Fortunately, tuition insurance provides a refund to families for both tuition and other academic expenses when students unexpectedly are forced to leave school for a reason covered by their policy,” said Joe Mason, Allianz Global Assistance.
Here’s why most students are leaving college unexpectedly:
College tuition insurance plans are relatively new, but parents and colleges like the concept so much that some universities have started offering tuition insurance protections in partnership with third-party insurance companies.
As a parent, you can go directly to a provider and choose the plan that makes the most sense for your family. Allianz Tuition Insurance provides reimbursement for tuition, housing and other fees in the event of a covered withdrawal.
Tuition insurance becomes a must-have, especially when a student enters his or her first year in college and for those who have student loans. If your child has shown any struggles with school in the past, then opting for tuition insurance gives you that much-needed backup plan to prepare for any unforeseen issues. There are many ways it could happen- your child may want to transfer mid-semester, or to take some time off and think about what kind of career they really want. Once they’ve taken out a student loan, they may be stuck.
You can choose from a wide range of available college tuition plans to suit your specific needs. Some of the coverage give emphasis on psychological or medical aspects. Keep in mind that the more extensive the coverage you choose, the higher the cost goes. Some of the most common insurance coverages parents opt for include family emergencies, homesickness, getting expelled for disciplinary reasons and failing to make the passing grade.
Parents can choose the tuition coverage for their child that best fits their budget. And it can be purchased on a per-semester basis. Some policies are less than 1% of the tuition cost. Get protection for the thousands of dollars of hard-earned money that you invest in your child’s education, including both out-of-state and in-state tuition fees, payments, room and board costs and on-campus housing fees.
The nature of insurance is that you get peace of mind in exchange for a nominal fee. That safety net eases worries about losing money or when your plan for your child’s future fails momentarily. You know that you can quickly get back on your feet in financial terms and support your child when they want to pursue their education. A few hundred dollars for a full tuition payment may be enough to allow you to focus on more important matters.
In conclusion, while tuition insurance might not be right for every family, it offers peace of mind and a safety net for those families dealing with high tuition costs and uncertainty.
These statistics are from 2017 Allianz Tuition Insurance College Confidence Index. Learn more about Allianz Tuition Insurance plans by visiting their website, or by contacting them directly at 1-888-427-5045.
Allianz Tuition Insurance protects both in-state and out-of-state non-refundable college tuition in the event that a student withdraws from school for reasons that include illness, injury or psychological/mental disorders. One insurance plan will even provide coverage for almost any unforeseen reason that may cause a student to leave school. Tuition Insurance must be purchased prior to the first day of the semester and three different plans are available, starting at only $29.95 per term. The insurance also includes Allianz Global Assistance’s proprietary Student Life Assistance, a 24/7 service that assists families in the event of an emergency.
While this post is sponsored, all opinions are my own. Learn more about UniversityParent’s Sponsored Posts here.
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