As colleges across the country head back to school and tuition bills come due, families have been considering whether to purchase tuition refund insurance to help protect their education investments. The Washington Post recently published an article asking “Should you take out an insurance policy to cover college tuition?” and spoke with our co-founder, Bill Suneson, to discuss the benefits of this protection:
Families are often clueless about college refund policies, said William Suneson, co-founder of Next Generation Insurance Group, which offers GradGuard tuition plans underwritten by Markel. The company said its survey of university administrators found that while school policies are usually disclosed on their websites, few go out of their way to discuss the terms with parents.
“It’s important that families become aware and schools let them know what level of reimbursement if available,” Suneson said. “If a school doesn’t offer 100 percent refunds, families should have the opportunity to insure the risk.”
He said his company has sold thousands of Gradguard tuition policies since the plans were first introduced in 2010. While Suneson did not provide the exact percentage customers who have filed claims, he said the company has a 60 percent target for its loss ratio, which measures the percentage of insurance premiums that insurers devote to claims. Some years are higher than 60 percent, others are lower, he said.
Read the full article on the Washington Post.