What is Tuition Insurance?
Also known as tuition refund insurance, it’s a policy that provides a student with coverage if they must withdraw from college. The coverage is typically utilized for medical or mental health issues. However, there are also policies that provide coverage for a broader scope of situations.
Tuition insurance can be a strategic purchase if the selected college doesn’t have a medical withdrawal policy, doesn’t offer a refund policy, or offers a very limited policy. The coverage varies widely in cost, with an average of about $200 per semester. However, it could cost up to $2,000 for 4 years of college. Some institutions offer their own version of tuition insurance with a cost that’s approximately 1 percent of college costs.
It’s essential that individuals understand their college’s withdrawal policy before they purchase tuition insurance. Some colleges allow students to withdraw for a medical reason and finish their coursework after they’ve recovered without further financial cost. Others have strict limitations on the reasons for withdrawal and refunds.
Some colleges may refund the cost of classes, but not books, supplies, transportation costs, or room and board. Still others will prorate costs and only refund a portion of the unused tuition. In many instances, tuition insurance may only cover costs if a student withdraws within the first few weeks of the semester. Examine withdrawal policies carefully. Many students found themselves without coverage during the COVID-19 pandemic because it wasn’t a covered reason.
Tuition insurance can be obtained from an insurance company or from the learning institution. With an average cost of $11,000 for instate and $27,000 per year out-of-state for even a relatively inexpensive college education, tuition insurance can be a good investment. Conditions, terms and exclusions for withdrawal vary by the policy. They can include the death of the student or tuition payer, life-altering illness or injury, mental health conditions, or pre-existing conditions.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487
