Tuition Insurance, Not Assurance

Chalk this one up as yet one more thing that I never thought I’d have to deal with when making a school choice–tuition insurance.  When you are writing a check for $10-$20K, I guess getting some insurance is probably prudent.  Costing around $6 for every $1K of tuition, these insurance policies will reimburse you for some or all of your tuition expenses should your child need to withdrawal from school for health reasons, dismissal, or non-health reasons such as financial hardship or relocation.  Sounds like a pretty prudent investment, right?  Well, as with anything be sure to read the fine print and don’t assume your situation is covered.  At one provider, A.W.G. Dewar, reimbursement for “withdrawal for other than medical reasons” requires that the student actually attend the school for “more than fourteen consecutive calendar days.”  So, for example you can write a tuition check in July and get a job transfer in August, you get bupkus because your child doesn’t start in September.  In my opinion, it’s probably still prudent to get this kind of insurance, but you need to understand what you’re getting.  These insurance companies partner with individual schools, so if you are accepted to a private school, the school will send you the materials for the appropriate insurance company.

While insurance is really a nice thing, I think what I’d really like is assurance.  Assurance that tuition isn’t going to cost me 50% more by the time my son graduates high school.  Not much chance that wish will come true.

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