The Benefits of Having an Education Insurance Policy
The cost of higher education is rapidly rising. Universities and colleges are offering more competitive programs at a more affordable price. Finding the right school, financing it and paying for it after you graduate all add up to a greater financial burden than ever before.
The good news is that there are many ways to lower your expenses as an undergraduate student. One of the best ways is by purchasing an educational insurance policy. An educational insurance policy is a type of college funding program designed to help students finance their education while they’re in college.
Here are some benefits of having an educational insurance policy:
You’ll Get Financial Aid – Educational insurance policies don’t replace financial aid, but they do allow for individuals who may not qualify for aid grants access to these plans.
These plans help you tap into other forms of assistance such as loans, grants, scholarships and work-study opportunities in order to reduce your expenses as much as possible during college. You’ll Be Bound by Your Student Loan Repayment
Schedule – If you have federal student loans, then your repayment schedule will be accelerated once your new loan balance exceeds $60,000 and when you take on additional loans after that point.
This means that you will end up paying back your loans more quickly than if you had not bought an educational insurance plan instead of using your student loans first.
What Does an Educational Insurance Policy Cover?
An educational insurance policy can cover a variety of educational expenses including tuition, room and board, books and other related costs. In most cases, the policy will pay out a lump sum once your child is a sophomore or junior in college.
Some policies may have a payout schedule and some may pay out a monthly amount. If your child is a freshman, then some policies may pay the full cost of tuition and a monthly amount for your child’s living expenses.
If your child is a senior, then the policy may pay the full cost of tuition and nothing else. It all depends on the specifics of your policy. You may be able to get coverage for some other expenses as well.
Some policies may have a coverage rider that allows you to get coverage for transportation, health insurance, summer school expenses and other in-college expenses.
Types of Educational Insurance Policies
Many educational insurance policies are broken down into four general categories: academic insurance, medical expenses, accidental death and disability coverage and athletic coverage.
Academic insurance policies cover tuition, books and other academic expenses. Some policies may also include coverage for a portion of transportation, technology, health insurance and other related expenses.
Medical insurance policies cover medical expenses including medical costs, hospital care, medical transportation and prescription medications. Some policies include a catastrophic coverage rider that pays out if your child is diagnosed with a certain illness or injury that requires major surgery.
Awareness of the death rider is increasing as well. This type of policy covers you and your child if he or she has an accident that results in death but does not cover any death benefit if your child is diagnosed with a certain illness or condition.
When Should You Buy an Educational Insurance Policy?
If your child is going to school full-time, then it is best to buy an educational insurance policy before your child is a junior in high school. This way, you can lock in the cheapest rates that are available. It is better to wait a few years than to pay more in the long run because rates will likely go up as times get more expensive.
Disadvantages of Having an Educational Insurance Policy
The biggest disadvantage of having an educational insurance policy is that you will be charged an upfront premium. This is something to keep in mind, but it is not necessarily a disadvantage. It is important to realize that the premium paid upfront will go towards the coverage that you get with the policy.
Tips for Finding the Best Plan for You
Shop Around – You want to shop around and get quotes on several different policies before choosing one. You want to make sure you are getting the best possible deal.
– You want to shop around and get quotes on several different policies before choosing one. You want to make sure you are getting the best possible deal. Check to See If the Company Is Licensed in Your State
– One factor that you want to make sure your company is licensed in is the state of your child’s college. This way if there is an issue with the school or a violation, you will be covered.
– One factor that you want to make sure your company is licensed in is the state of your child’s college. This way if there is an issue with the school or a violation, you will be covered. Make Sure the Company Has Good Reviews – Make sure the company you are looking at has good ratings and reviews. These can help you make an informed decision.
Final Words: Is An Educational Insurance Policy Right For You?
It is hard to know when you are ready to have children and how to plan ahead. An education insurance policy can be beneficial in many ways, but it is important to realize that it is not a quick fix to help pay for college.
It is a long-term financial solution that must be carefully planned for. It can take a few years to see the benefits of an education insurance policy.
If you decide to purchase one, make sure that you are educated on the different types of policies available, the benefits of each type, and how to make the best possible decision for your family.
Leave a Reply