3 Factors for Choosing a Tuition Insurance Plan

By Kaitlin Hurtado on September 5, 2018

Tuition insurance is something that not many college students know about, and sadly, it could be helping out much more college students if there was more awareness of the option. For those that do not know what tuition insurance is, it is insurance that can repay the cost of your tuition should you choose to withdraw from college. Much like other forms of insurance – health, auto, renter’s – it is supposed to help you in the worst case scenario and help you out on saving money in the long run.

College is another big investment, just like a car or a house, and you want to protect the money you invest in it just as you would for any big investment. If you do find yourself having to withdraw from college, it allows you to do so without extensive financial loss. If you are looking into tuition insurance plans, you may find yourself lost on which one to pick. There are multiple factors that go into finding the perfect tuition insurance plan for yourself and here is a narrowed list of factors to help guide you to your ideal tuition insurance plan:

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Research your university’s refund policy to figure out how much coverage you need

There is no point in shelling out a ton of money for a tuition insurance plan that will give you plenty of coverage, only to find out that your university’s tuition refund policy is generally lenient. Make sure that you put research into what your university’s refund policy is so that you are aware of how much and/or what kind of coverage you will be needing in your tuition insurance plan.

Look through your college’s financial aid website for information regarding your school’s potential for tuition reimbursement, or pay a visit to see someone in-person at the office. The latter is recommended if you prefer someone to talk you through the university refund policy and then answer any and all questions you may have.

Make a list of bullet points that outline what your university’s tuition refund policy covers so that you can refer back to it when you are in the process of picking out a tuition insurance plan.

Consider why you think you need a tuition insurance plan to begin with 

Think back to why you are looking into investing in a tuition insurance plan. Maybe you don’t exactly believe in your ability to go all the way to your diploma, or you aren’t quite sure if college is the right road for you. Maybe you have a preexisting medical condition that you know may hold you back from attending college down the road. Or maybe like other forms of insurance, you want a tuition insurance plan to help you prepare for the worst case scenario.

Pick your most reasonable cause and factor that into your decision on picking a tuition insurance plan. All tuition insurance plans vary, but you can find one to suit your needs. Some will not cover your withdrawal from university if it’s drug-related or academic failure. Others may have a steeper price if it is to cover for a pre-existing medical condition, as those are the ones that are most commonly used.

Narrowing down why you need a tuition insurance plan will narrow down the list of tuition insurance plans that will fit your needs.

Think about how much you are willing to pay now

Of course, you are picking a tuition insurance plan is to help you down the road financially if you do need it, but there is no use in going through the trouble of finding the “perfect” tuition insurance plan if you are not going to be able to pay it. Look into the tuition insurance plans that are reasonable for your own budget.

The more costly the tuition insurance plan, the more coverage is usually provided. This can mean that instead of just covering tuition reimbursement, it can also cover school-related costs like textbooks and housing. However, you may not need that extra coverage if you are living at home or even able to afford to live on your own aside from attending school. Paying for your rent may cancel out the cost of shelling out the extra cost of a more expensive tuition insurance plan.

Try creating different budget plans around various price points to see what price works best for you and your financial situation.

If you haven’t done so already, seriously consider the possibility of investing in a tuition insurance plan. College is a big investment, and investing a little extra money into a tuition insurance plan may be worth it when you have peace of mind and the possibility of having your finances protected if your college plans fall through. It never hurts to research your potential possibilities and you’ll never know how helpful the right tuition insurance plan could be until you try.

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