Every year the number of dropouts from schools and colleges are in increasing trend. Even when the students are willing to continue their studies, they are forced to drop their further studies. The reason for dropping the studies can be several like death or incapability of the guardians and the financial problem. So, to secure the students from being unable to pursue further studies, the idea of education insurance has emerged.
The insurance which is made to manage the amount for the education is known as education insurance. Generally, in this insurance, parents of any children should make insurance for fixed period of time for their education. Parents have to keep the child’s name as his representative. While insuring the children with regard to the education, the parent will need to pay some amount regularly to the insurance company which is also known as insurance premium. After the expiry of the contract or any accident to the parent, the children are given the insured amount which can be used for children’s education.
Education insurance has existed since 1930 with the view of securing the life of the children. It benefits both the students and educational institutions since it may cover the money a student owes to an educational institution like school, college, university etc in case the tuition payer can no longer cover these costs. Education insurance can be obtained through educational institutions or directly from the insurance company. It also can be received as the part of a student loan. Such education insurance may cover the cost of the tuition in whole or even partly if a student has to withdraw from his or her studies due to several reasons.
