Why You Need Tuition Insurance Before College Starts 2021

Many college parents have been asking us about tuition insurance. Tuition insurance is an affordable form of protection that reimburses a college student / family if they are forced to complete a withdrawal from college due to a covered reason. Part of the growing interest relates to new forms of tuition insurance that are now available through Allianz and GradGuard. A.W. Dewar's has offered tuition refund insurance for 80+ years, but these new providers have entered developed new approaches to helping families protect the nearly $500 billion invested in a college education annually. Typical tuition insurance programs, which only offer tuition refunds when a student withdraws due to illness, injury, psychological conditions or death.
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One of the many things COVID taught us is the importance of insuring such an expensive investment as tuition. And if tuition insurance isn’t purchased before the semester starts, your student may not qualify for coverage for anything that happens that semester.

We are fortunate enough that the CEO of College Parents of America is also the CEO of GradGuard tuition insurance, which paid COVID among other claims. College Parents of America includes $5,000 of annual tuition refund insurance within our annual paid memberships.

If you’re thinking about getting tuition insurance, you need to think about the potential illnesses that could cause a medical withdrawal. Then you need to double check with the insurance provider you choose or have to make sure they cover the most possibilities.

The list below is based on data from the 2020 American College Health Association annual survey of more than 15,000 students, there are many student health issues that may also disrupt your student’s education.

Common Causes of Semester Withdrawal

Psychiatric Condition

Over 20 percent of students surveyed suffered severe psychological distress. There are a range of psychiatric conditions that could lead to a medical withdrawal such as severe anxiety, depression, or bipolar disorder. As with any condition, pre-existing conditions don’t disqualify students.

Serious Accident

If an accident is serious enough to warrant a medical withdrawal, tuition insurance may cover them. About 10 percent of students surveyed experience an orthopedic injury and less than 1 percent will experience a traumatic brain injury.

Chronic Medical Condition

Chronic conditions can make college a difficult decision, because you always want to live as normal a life as possible. Yet, there’s always a chance you may have to be able to complete a semester, and withdrawing after college deadlines can be quite pricey in tuition. Luckily, students still qualify for insurance. Your student is not alone in this dilemma. One percent of students reported having cancer at some point in their lives, and 2.5 percent reported heart conditions. Over 3 percent had high blood pressure and over 2 percent have diabetes.

Drug and Alcohol Addiction

Unfortunately, drug addiction is fairly common among college students. While 1 percent report having a drug addiction, about 2 percent feel they are in recovery from a drug or alcohol addiction. Alcohol is the highest used substance with half of students having a drink in the last two weeks. Cannabis is next followed hallucinogens, prescription stimulants, and cocaine. Almost 15 percent of student who had a drink in the last 30 days and are drivers, drove with alcohol in their system in the month before the survey. A third of cannabis users who are drivers drove within 6 hours of using the substance.

Bottomline

Like health or life insurance, tuition insurance protects your finances in case of something unforeseen happen, even if it’s from a pre-existing condition. Purchase tuition insurance before the next semester begins to make sure your student’s covered. Don’t expect payout if you your student drops out for a semester if the condition isn’t deemed serious enough by a mental health or other medical professional to warrant a medical withdrawal. When in doubt of what’s covered and how much, refer to the policy statements and information provided by your current or potential insurance provider.