Determining Your Life Insurance Needs When Considering College Fees
Determining your life insurance needs if you have a child entering college seems easy enough. You look online for the cost of college tuition, room & board, multiply by 4 (or number of years of college) and get a life insurance quote for that amount. You can sit back and hit that easy button. You think your child’s college education is all paid for if you pass away while your child is at college.
Now here comes the not so easy button. Tuition and room & board does not include all of those extra expenses. After your child gets accepted into college you will quickly learn the word “fee” is not included with tuition and room & board. When you start looking at all of the extra fees involved you will quickly want to ask for a new life insurance quote to cover these additional costs.
Trying to determine what those fees actually mean can leave you shaking your head. For example, at the University of California Santa Cruz Campus http://registrar.ucsc.edu/fees/registration/undergraduate-student-fees.html#undergraduate-fees they have a Free/Anonymous HIV Testing Fee for $2.25. If it’s free why does it cost $2.25? (I am still shaking my head on that one.) All of these fees can add up to an astonishing $4,000.00 per year. Time to pull out that life insurance calculator….oh wait! What about those non-documented expenses?
If your child goes to school across the country, plane fees for coming home every summer or during the holidays can add up. Books, photocopying, printing, new laptop or laptop repairs, laundromat, off campus eating, pizza deliveries, cable tv, parking fees, transportation costs (whether they have their own vehicle or public transportation), spring break trip, sororities and fraternities, science lab fees, COFFEE or other caffeinated beverages. You may want to factor these non-documented expenses into your need assessment calculator.
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.