Insure your investment in child’s college education
Putting your child through college is one of the best investments you can make. But it’s a huge investment, and it’s getting bigger.
So given the buckets of money parents are pouring into their children’s college educations, shouldn’t there be some protection for their investments?
A product called tuition refund insurance aims to fill that need by reimbursing you for the tuition you’ve already paid if your child has to withdraw from school for medical reasons.
The insurance has been around since 1930, according to A.W.G. Dewar Inc. in Quincy, Mass., which originated the insurance and is still the largest seller.
Dewar’s plan is aimed at families with children in private colleges or universities.
Similar plans are offered by Education Insurance Plans Inc no teletrack payday loan. and Markel Insurance Co. College Parents of America, a nationwide association that advocates for the interest of college parents, also recently started including tuition insurance as part of its membership.
Tuition refund insurance typically costs 1 percent to 5 percent of the face value of the coverage per year, financial aid expert Mark Kantrowitz said.
Before buying tuition insurance, read the terms of the policy carefully.
Some plans may include a pre-existing condition exclusion of six months to a year, said Kantrowitz.
Filed under: term by Pascal