Insuring your Child’s Education
School Fee Protect Insurance insures your child’s education against your unemployment or disability. Business Insurance Specialists Pty Ltd provides a very easy and fast application process to obtain a quotation.
People insure their pets, their cars, their homes. What about your child’s education which is paid from your salary ?
This product allows you to insure the cost of your child’s education due to disability or unemployment. The cost of the insurance is very reasonable.
As an example, the cost is based on a percentage of your child’s school fees. As an example, if your child’s fees are $ 8,000 for the year and is based in Qld, then the annual total cost for the coverage is $ 287.76 – less than $ 6 a week. This provides a payout for your child’s school fees in the event of disability or involuntary unemployment.
For a no obligation quotation, click School Fee Insurance – On-line quotation – Protect your child’s education.
There are two methods of obtaining a claim payment – Unemployment or Disability.
For the coverage to apply, you must be unable to perform your usual occupation for up to twelve (12) months due to an Illness or Injury that arises during your period of insurance, provided it is not a pre-existing illness or injury, and has been certified by a medical practitioner. You are paid every 3 months in advance, and if you gain employment during that time, you still keep the full payment made for those 3 months.
For involuntary employment, benefits are payable for maximum of six (6) months during any consecutive twelve (12) month period. If your child’s school fees have been continuously insured under this policy since year 7, it will increase this benefit to: 7 months in year 8; 8 months in year 9: 9 months in year 10; 12 months in years 11 and 12. You are paid every 3 months in advance, and if you gain employment during that time, you still keep the full payment made for those 3 months.
The amount to be paid is limited by the Insured Amount of your child’s school fees. There is a waiting period of 30 days from the Original Policy inception date, and a 14 day excess on the policy meaning you have to be either disabled or involuntary unemployed for 14 days.
Common Questions for School Protect Insurance
How is this different to regular income protection cover?
Cover is more specific, with a far lower premium. Some occupations have trouble getting full income protection.
Can the premium be paid monthly?
No, the premium is an annual payment.
Are small business owners covered?
Yes, as long as they are not classed as self-employed – i.e. if they are incorporated and the parent is paid a salary.
Are farmers covered?
Yes as long as they are not considered self-employed i.e. sole trader, partner.
What is excluded?
Self-employed are excluded – such as sole traders and partners
Does it cover non-compulsory pre-school?
No, the policy covers the 13 mandatory Australian school years only. The year before year 1 through to year 12.
- In NSW, this is Kindergarten to year 12. K-12
- In VIC and QLD, this is Prep to 12. P-12
- In SA, this is Reception to year 12 R-12
- In WA, this is Pre-primary to year 12 PP – 12
Does it cover public and catholic schools?
Yes, School Fee Protect covers school fees in any school.
What about voluntary redundancy?
No, only involuntary redundancies are covered.
Can both parents be covered at the same time?
Yes, as long as they both have a policy raised.
If both parents have a policy, can they both claim?
Yes, on the policy covering the relevant parent. In other words, both parents lose their jobs and they are both carrying a policy, both policies are valid.
Who gets the payout?
The policy holder, in most cases, the parents.
What if the parent goes back to work before the end of 6 / 12 months?
They keep the money.
How is it paid out?
The claim requires a description of the changed employment situation plus a copy of the school fee statement(s).
Please note the exclusions applicable to this coverage are located in the policy wording, such as failure to seek medical attention and/or treatment and/or failure to follow medical advice. Please read the relevant pages in the policy wording specifically relating to General Exclusions prior to purchasing cover.
For a no-obligation confidential discussion on this coverage, contact Business Insurance Specialists Pty Ltd on 07 3139 3900.