Definition: Tuition insurance can help a tuition payer obtain back tuition costs. Tuition insurance can be purchased for private elementary, middle, and high schools. College tuition insurance is also available.
Many purchase tuition insurance because of high tuition expenses. Tuition insurance will return these tuition expenses due to varing circumstances that prevent a student from finishng their schooling. These circumstances include illness, death of a student or tuition payer. Tuition insurance for students in private K-12 schools offer more protection and will usually also cover costs due to a tuition payers job loss or required residence change.
There are exclusions to tuition insurance. Some exclusions include changes in classes, early graduation, suicide or self injuries, war and closure of the school. Tuition insurance costs are reasonable and vary anywhere from 1-3% of the students tuition expenses.
Examples:
Linda had a job that required her to move frequently. She chose to purchase tuition insurance for her daughter's private school tuition expenses. It was a good choice since her job did require her to move during her daughter's school year and the tuition insurance helped cover Linda's potential loss of tuition expenses from withdrawing her daughter early from her private school.
