Tuition Insurance Is Getting More Attention

Posted in

February 25th, 2010

For students who are concerned that they may not be able to receive most of their tuition back if they drop their classes, they may want to consider tuition insurance.

Unlike life, auto, health and homeowners insurance, this type of insurance is virtually unheard of (maybe because it’s only offered by one company). However, since the economy has worsened, some students have begun looking to it for ways to protect their major investment.

What is Tuition Insurance?

Tuition insurance is a type of insurance students or parents can purchase to help protect the amount they spend in college tuition. However, because most colleges refund some percentage of a student’s tuition until at least the midpoint of the semester, most don’t consider it as an option.

The thing is, there are some inherent benefits to this type of coverage. If you have a medical emergency that requires you to leave school past the semester’s midpoint, you want to make sure you don’t lose your money. Unfortunately, the odds of this are so rare that it’s hard to justify spending the money to do so.

If You Do Want Protection Then

For those who are interested in protecting their college tuition by taking on tuition insurance, it’s good to know that it is offered most widely by A.W.G. Dewar in Massachusetts. So far, the company offers insurance policies to students and their families at 180 U.S. colleges and universities. Also, the insurer offers coverage to around 1,000 private primary and secondary schools.

The average cost of the insurance is a couple of hundred dollars a year. In order to file a claim after leaving school, you must be able to prove that you withdrew from school for well-documented medical reasons.

Lately, some other insurers like Markel Insurance have been looking to get in on this venture. So soon, a competitive market may emerge for tuition insurance and its benefit of securing your college tuition.

Would you consider tuition insurance as an option to protect your expensive college costs?