It might be worthwhile this fall.

Every year, thousands of college students become ill or injured during the academic year and are forced to drop out, if only for a semester, and go home to recover. Covid-19 increases that risk.

If your student must drop out of school due to illness or injury, the money you paid in tuition is lost – meaning you’ll have to pay for that semester again.

For these reasons, you might want to consider buying tuition insurance. These policies typically reimburse 75 percent of the tuition you paid if the student withdraws within the first five weeks of school, and 100 percent if your child withdraws after five weeks.

The policies typically won’t pay benefits if the college closes the campus and sends kids home due to Covid-19 or if students are required to attend online courses. Other exclusions include drug use or injury sustained by participating in a riot or intentional self-inflicted harm.

Many colleges partner with insurance companies to offer these policies. An online search will quickly reveal them as well.

Copied from Edelman Financial Engines newsletter of July, 2020.

 

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