<p>Our S's college sent a flyer advertising tuition reimbursement insurance, which pays back about 80% of tuition if the child withdraws for medical reasons, after the college's grace period of 6 weeks into the term. The cost is about $350 for the academic year. Is it a good idea to purchase this coverage?</p>
<p>Sounds steep to me. I can buy term life insurance for $350 a year that will do better than a tuition payment (I guess it depends on your tuition). What are the chances he will drop out? And does this apply for mental health or academic reasons?</p>
<p>I don't think ordinary term insurance would pay for withdrawal because of illness, only death -- so this policy is not comparable to that. It doesn't pay for withdrawal for academic reasons. S is very healthy. Illness that disrupts a term does happen, who knows how often? The idea apparently is that when the student recovers and re-enrolls, he does so without loss or debt from the term interrupted by illness. The price is steep, I agree.</p>
<p>Tuition insurance doesn't cover room and board or other fees?</p>
<p>The insurance exists because there is a need for it, for some people. Its cost is relative to its occurrence. At $350 this is about the cost of a RT airfare, 1% of tuition.</p>
<p>Some should have insurance even though they can't afford it. Some can afford it and don't need the insurance.</p>
<p>It covers "tuition and fees." I think that probably includes room and board, but it isn't spelled out specifically. Interestingly, it covers mental as well as physical illness, but does not cover withdrawal for drug addiction or suicide. Very grim to have to be considering such possibilities in the sunny summer between high school and college!</p>
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<blockquote> <p>Interestingly, it covers mental as well as physical illness, but does not cover withdrawal for drug addiction or suicide.<<</p> </blockquote>
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<p>This is interesting...so if your child is suffering from mental illness that leads to suicide, you're not covered.</p>
<p>hmmm...and since many times a depressed or troubled college student will get involved with some sort of substance abuse and that isn't covered either...</p>
<p>I always though tuition and fees only referred to that, not room and board.</p>
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[quote]
Our S's college sent a flyer advertising tuition reimbursement insurance, which pays back about 80% of tuition if the child withdraws for medical reasons, after the college's grace period of 6 weeks into the term. The cost is about $350 for the academic year. Is it a good idea to purchase this coverage?
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<p>I doubt it. What are the odds that a healthy 19 year old will need to withdraw from school due to medical reasons? Probably extremely low. And if it's a typical scummy insurance company, they will find some weak reason to deny coverage in all but the clearest cases. </p>
<p>It might be worthwhile if the child has health issues. But I bet the insurance won't cover pre-existing conditions.</p>
<p>we did not buy it but my son dropped a class after mono broke him and that was basically a 5000 dollar decision. He made a very good grade the next semester in the same class he was failing when recovering from mono. </p>
<p>all told, three of his friends came home freshman first semester with mono and my son was the luckiest..his recovery linked with the winter break but he was "not clear headed" for weeks.</p>
<p>we have not bought this insurance but since he goes abroad a semester, I guess we will think about it...</p>
<ol>
<li><p>read the fine print of any actual contract, looking especially for any pre-existing condition exclusion. </p></li>
<li><p>Beware of the "drug addiction" if they include alcohol in that definition. Weekend use could be called addiction</p></li>
<li><p>Keep in mind that many schools will grant incompletes if a problem arises later in an academic term.</p></li>
<li><p>If you want to be adventuresome, try to find out the percent payout to a school under the plan. Or try to find out how many (i.e. what percent) of undergrads withdrew for reasons that would have been covered by the insurance plan offered by the school. Then do the math. Problem is I bet NO school will ever release such information. No upside for them. They have you committed already.</p></li>
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<p>We have this type of insurance at our private secondary school, but if you don't pay the full bill up front in August the insurance is mandatory. I would not pay it if given the chance.</p>
<p>I probably wouldn't do it BUT in response to how many healthy 19 year olds drop out of classes due to medical reasons - probably more than a few. 19 year olds do stupid things (and even older). My boyfriend in his freshman year of college was roller blading and ended up getting hit by a bus. Needless to say he had to drop out for a semester to recover. Later on in another academic environment he was on his motorcycle and was hit by a minivan who made a left turn into him. That was another 4 weeks recovery. </p>
<p>Something to think about but you definitely an individual decision on a case-by-case basis.</p>
<p>A bit more factual info. From the Dewar (they sell most of these plans) website for the Harvard policy:
[quote]
Injury and Sickness Withdrawals
90% of the insured term tuition and fees, less any refund or credit due you from the college, will be refunded provided your medical condition is certified by a licensed physician and forces you to completely withdraw from all classes for the balance of the term.
What Is Excluded?
Note that the Plan does not cover the following: war or any act of war, declared or undeclared • terrorism • the use of any drug, narcotic or agent which is similarly classed or has similar effects, (excepting when it is prescribed by a doctor) • taking part in a riot • failure to attend classes for any reason other than injury or sickness • withdrawal when the student receives credit for an incomplete term • suicide or intentional self-inflicted injury or sickness • nuclear reaction, nuclear radiation or radioactive contamination.
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<p>You can bet alcohol has a "similar effect" as drugs.</p>
<p>Other schools have similar provisions. Also note you are insuring the difference between what the school gives and the plan max. And, you MUST have an MD certify inability to return. </p>
<p>Dewar does not offer these policies out of generosity.</p>