If you have a child in college or one planning to go in the near future, you might want to think about insurance. Chances are high that your child will come away from college incident free, but as you think back to your college days, you may remember a few close calls. Here are a few types of insurance you should consider. (For related reading, see 5 Insurance Policies Everyone Should Have.)
Of course the most important is health insurance. Most employee plans will allow your child to remain on your insurance while they are in college but it's best to make sure. If not, most major universities offer student health insurance at a low cost. There are also private policies available specifically for college students.
In case of a fire, you wouldn't have to pay the damages for the structure where your child lives but you would have to replace the contents of the room. If they rent an apartment, the expenses associated with replacing all of their belongings could be a significant amount. Renters insurance is cheap and protects against the loss. Make sure you have detailed information including pictures of the insured contents.
Tuition insurance is offered through major universities as well as private companies. This insurance protects against the loss of tuition if the student leaves the university. Often, the reason must be medical in nature or the loss of an immediate family member. Some higher priced policies may also cover student loans. If your child attends a high tuition university, this type of insurance may be worth exploring. (For more information, read Tuition Insurance Takes Sting Out Of Withdrawal.)
Emergency Medical Evacuation Insurance
Didn't know this one existed? If your child is studying out of the country, this type of insurance protects against the high cost of bringing them back to you and may cover the cost of taking you to them. Depending on the location, multiple types of transportation may be needed to get them home. For people vacationing abroad, that could be more than $10,000 in some cases.
Your child may not be driving while at school, but if they are, they are most likely covered under your policy. Still, consider comprehensive coverage if you don't already have it. For students that are not covered, consider using something like Progressive's Snapshot which looks at your actual driving distance and other habits to set your policy rate. If you're only driving a small distance to and from class, this program could save a significant amount of money.
Sallie Mae is the nation's largest student lending facility. Recently, they unveiled an insurance bundle that includes health, auto, life, renters and travel insurance to help better protect students from the unknowns once they leave your home.
Other insurance companies offer similar to products as Sallie Mae. Talk to a local insurance agent about the types of policy bundles available for purchase.
The Bottom Line
For students heading to college or already there, insurance is a must. Although it's probable that they will never need it, if something happens, set yourself up with the peace of mind to know that the finances are covered. (To learn more, check out Understanding Your Insurance Contract.)