Whether you are going back to school, starting your own business, or traveling the world, there may come a time when you need to fund further education but don’t have the money.
Education insurance can provide the financial means to continue your journey and achieve your dreams, but it’s not always as simple as choosing the right plan—there are various types of plans and factors to consider that can make all the difference in your long-term financial health.
Here are three common types of education insurance and what you should look out for before purchasing any plan to ensure you get the best possible return on your investment in yourself.
Life Education Plans
Not only is life education insurance a helpful financial tool, but it can also be an easy way to plan for your child’s higher education.
Any eligible Canadian resident may apply for a Registered Education Savings Plan (RESP), in which they make contributions based on income and family size and receive matching government grants of up to $500 per year.
Additionally, children who are eligible under government grants or student loans may receive assistance with interest charges once they start university. Understanding all your options will help you make educated decisions about how much education coverage you need and what type will work best for your situation.
Accident Insurance Plans
Scholarship plan agencies are looking out for you, so they want you to take advantage of their services as much as possible. For example, some companies provide accident plans that protect your child against illness or injury.
There is even insurance available that will cover a variety of disasters—such as a fire, theft, or terrorist attack—which could destroy your family’s home.
Some plans also offer other types of coverage such as emergency medical expenses, prepaid tuition, and funeral expenses for loved ones in your household who pass away.
Depending on what’s important to you, there is probably an education insurance plan designed specifically for your needs. It’s definitely worth taking some time out and considering what would happen if a one-day disaster struck?
Cover for Tuition Fees Only
Fully funded Scholarship, tuition fees, and accommodation: These are financial assistance grants awarded by a funding agency, which do not ask for a reimbursement. The study grant covers tuition fees, accommodation, and living expenses.
This is usually sponsored by research institutes or government agencies and scholarships may be available through an institution that you are applying to work in if you’re a student there.
Scholarships are awarded on merit (the why-us) basis or according to need (the need-us). For example, in South Africa, some funding bodies offer scholarships for excellent students from poorer backgrounds who need financial help with their studies.
Conclusion on Education Insurance
While all education insurance policies are not the same, they do share a lot in common. They should also give you an idea of what options you have available.
Once you’ve selected the best option, make sure to review any exclusions or limitations so that you fully understand the scope of coverage. And don’t forget: Educating yourself on your insurance options is one way to ensure that you will be financially secure in the future.
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