School Fees Protector Benefit

Do you want to give your children the best education possible but are worried about being able to afford the cost of private school fees if something should happen to you or your partner?

AIA Australia have introduced a new optional benefit which can help to pay for your children’s school fees if you become totally and permanently disabled, terminally ill or you pass away. It can provide you with peace of mind knowing your children’s school fees are protected and hopefully prevent you from having to relocate them to a more affordable school, away from their friends and established support network. Together with child insurance, it can provide your children with excellent protection.

Policy information:

Child entry ages:

  • 2 – 15
  • Up to a maximum of 10 children

Available with:

  • Life Insurance
  • Total and Permanently Disablement Cover

Benefit payable:

Primary School Secondary (High) School
The lesser of:
Your child’s tuition fees; and
10% of the sum insured
The lesser of:
$16,000; and
Child’s tuition fees; and
10% of the sum insured of the principle benefit

The school fees will be covered for the remainder of the child’s education.

Case Study:

Steve and Tina have a single child Rebecca enrolled in Year 3 in a prestigious private school in their area with the school charging $7,000 per year in enrolment fees.

Steve, working as an electrician and Tina working part-time as an auditor, realise that if something were to happen to either of them, they would not be able to afford the school fees for Rebecca.

They decide to take out School Fees Protection as an option to Steve’s $2 million TPD cover through AIA Australia, to make sure their daughter’s school fees are covered should something happen to them.

Unfortunately, shortly after Rebecca begins years 4, Steve is injured in an accident at work which causes him to lose the use of his leg, making him totally and permanently disabled and unable to work.

Fortunately, Steve and Tina were still able to pay Rebecca’s school fees for the remaining years of her school life:

Primary school: $7,000 x 3
High School: $12,000 x 6

Total Benefit: $73,000

If you are concerned about being able to pay for your children’s school fees if something should happen to you, contact Life Insurance Direct on 1300 135 205 about the AIA Australia School Fees Protector Benefit.
Source: AIA Australia School Fees Protector Benefit, June 2013

Published: June 25, 2013
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