The average person living in the United States has heard of the basic types of insurance policies. Think car, home and life insurance. While those insurance policies are important, they are not the only types of insurance available. In fact, depending on your situation there are many other types of insurance policies that could be critical in ensuring your financial future. One specific example always comes to mind when discussing this reality: tuition insurance.
Tuition insurance really only applies to students and parents, but a tuition insurance policy could save you thousands of dollars. Let’s take a look at what exactly tuition insurance does, and when you should consider investing in it.
Tuition insurance, also known as tuition refund insurance, is an insurance policy that is designed to provide tuition coverage if a student is forced to withdraw during the middle of a semester. Like any insurance policy, the terms vary depending on the policy you choose, but in general, this coverage is dependant on the student withdrawing due to a medical emergency. However, is is possible to get a plan that offers coverage regardless of the reason that leads to the student leaving school. It is worth noting that policies like that tend to have higher premiums than the ones that require a medical reason.
A college education in the United States has never cost more for the average student than it does today. Unfortunately, those costs look like they will continue to grow over the next few years. That high cost makes a college education a massive investment. An investment so massive, that for many families it may not be something they can just recover from if their student needs to leave school. That’s the problem that a tuition insurance policy is designed to solve.
Tuition insurance provides a full, or partial, refund for tuition, room, fees and board in the event that a covered event occurs that requires the student to dropout of school in the middle of a semester.
Yes, many colleges offer their own tuition refund policy. As it turns out, most of those collegiate policies operate on a declining schedule. By that we mean that the actual dollar amount refunded declines rapidly week after week. So much so, that if you are five or six weeks into the semester, you many not get back any money at all. That’s why an actual tuition insurance policy can be the better bet. After all, it’s impossible to know when an accident is going to happen. Why only protect yourself from accidents happening in the first few weeks? With a proper tuition insurance policy you’ll know that your finances are protected, no matter what happens.
The crux of every tuition insurance policy is what constitutes a covered event. The more covered events you have in your policy, the more expensive your premium is likely to be. If you are going to invest an a tuition insurance policy be sure to pay extra attention to what your covered events are. You don’t want to think you’re protected, then still get stuck with the bill.
We know that insurance can be a tricky topic. That’s why we are so thankful for the staff at TGS Insurance. They are experts on the insurance industry and are always willing to work with you to find the right policy for your lifestyle, and your wallet. Visit www.tgsinsurance.com to learn more.