Insurance is often one of those things we forget about until we need it. June 28 is National Insurance Awareness Day, and it's a good time to evaluate the risks of college life.
Real risks to be aware of
One out of four students who enroll in college don't complete their degree. As a result, college families can benefit from taking steps to overcome risks that could disrupt their child's education.
"Paying for college is usually the second largest investment college families make," says John Fees, co-founder of GradGuard, an authority at helping schools protect students from preventable financial losses. "Families are smart to protect that investment."
Know your school refund policy
If your student has to withdraw from college due to a serious illness, injury or accident, it's unlikely you'll receive a full refund. However, tuition insurance can provide a refund when schools don't. If you can't afford the cost of an extra college semester, then it's essential to purchase tuition insurance coverage before the beginning of classes.
Confirm health insurance coverage
Many colleges offer health insurance plans to students and require them to purchase or opt-out by showing proof of alternative insurance. According to the American College Health Association, about 10 percent of students get their health insurance through their school. A college health insurance plan may make sense for some students. But if you have family health insurance, your college student can remain on a parent's plan until the age of 26.
Understand the risks of living on campus
For many of the nearly 3 million students who live in student housing, this is the first time they are living independently.
- 98% of colleges and universities don't replace stolen or damaged student property. (HigherEdStudy)
- 1,999 fires are reported in campus-based student housing. (Clery Act Reports 2009-2019)
- 69,500 property crimes were reported on campuses nationwide. (FBI Crime Report)
Students are smart to consider purchasing renters insurance. GradGuard's renter's protection plans provide worldwide property coverage with a low deductible and no credit check.
GradGuard’s college insurance search tool can make it easier to find the insurance programs that are right for your college student, or even recommended by their institution.
National Insurance Awareness Day is only once a year, but it's always a good idea for college families to understand the risks of college life and how to protect themselves from a financial loss that could disrupt their goal of completing a college education.