Murphy Holderness, Protect My Tuition Program Leader
Unexpected moments occur in life and business. When it comes to your school, its operating costs, and your students it is crucial to be proactive. Private school education is truly an investment to many families, and when there is an unforeseen student withdrawal from the school, this can greatly affect your school’s operating budget. From unexpected unpaid tuition bills and the parents’ obligation to pay large tuition balances after withdrawal, it is critical to have a tuition program that will shield your budget and your students from the unexpected.
What is tuition insurance?
Tuition insurance is a form of insurance that can cover the financial obligation a parent has to a school in the event their child needs to withdraw. Situations such as an unexpected pandemic like COVID-19, discharges, and sudden inabilities of the tuition payer should not affect our students’ futures.
When reviewing MMA’s book of business, the top three reasons a student drops out of the semester are medical reasons, voluntary withdrawal, and disciplinary issues – with 80% of the withdrawal claims being a result of either medical or voluntary reasons. For many institutions, this can be challenging to plan for and makes budget planning unpredictable.
Three reasons to consider tuition insurance:
The ability to protect your operating costs. Your school shouldn’t have to worry about non-payment from a parent for the outstanding tuition balance.
To provide expedited claims processing. Claims are paid directly to the school and the school can then settle the student’s balance with the parents.
There is a value-add to parents. Tuition insurance brings peace of mind to parents. So when something unexpected happens, their financial obligations to the school can still be met.
What to look for in a tuition insurance program
Look for a program that is flexible, with custom elements that fit to your unique needs. Considerations should include different levels of co-insurance or whether you require all students to purchase the coverage versus keeping the program voluntary. Other items to consider in program:
Simplified claims filing process
No waiting periods; coverage is available day one
Coverage with an A+ AM best rated carrier
Tuition continuance endorsement
A tuition continuance endorsement can be attractive for both families and schools. Unexpected circumstances like the death of a payer or job loss helps families protect their tuition and keeps the student in school.
All institutions have different approaches and philosophies so it is important to have a partner who can walk you through the various options to build a program that fits your goals and objectives.
Protect My Tuition
Ultimately, parents are assuming their child will be attending school for the whole calendar year, with no interruptions. Of course, this is not always the case. Life throws unexpected situations at us, and may disrupt the school year for the student and their families. With MMA’s proprietary and fully customizable Protect My Tuition program, we can ensure that you will secure protection of an attendee’s investment as well as the school’s bottom line. Our program offers an array of different coverage plans tailored to your every need, giving you and your students peace of mind in this unexpected world.
Learn more here or reach out to our tuition insurance team to discuss the Protect My Tuition program.
Interested in international student travel insurance? Learn more here to help protect your students and staff when traveling abroad.
