Protecting your child's private school education
So you see the value in sending your child to private school. That's great! It is probably why you are reading this article. You also feel that investing in a private school education is worth the expense and sacrifice.
These are two big conclusions you've reached, congratulations. Now pause, take a deep breath, and ask yourself this one question:
If my spouse or I no longer brought home an income due to injury, illness or death, would we still be able to afford private school for my child?
For the vast majority of people, the answer is no. However, there are affordable ways to protect your ability to pay for private school. Before you take the steps to enrol your child in private school it is important to ensure you have the proper protection in place. If the choice comes down to the cost of protection versus the cost of tuition there is only one way to proceed: find a different high quality private school with a lower tuition. There are no short cuts to having the proper protection.
When it comes to protecting your family's income, there are many options. Also, you may have some protection through your employer's benefits, but it is important to find out exactly the coverage you have. Anything you lack may be purchased privately. Here are three major tools to protect your child's private school education and some suggestions to keep the costs lower while still meeting your family's needs:
We can't control events in our life and sometimes death does happen. Since the expense of private school will not last forever, term life insurance is an affordable way to have the protection your family needs should you or your spouse die prematurely. Selecting the shortest term that meets your needs will also save money. A child starting in private school from an early age may require a 20-year term of insurance where a child starting in later years may require a 10-year term. Once your child is finished school, you may reduce or cancel this insurance coverage.
Replacing your or your spouse's income if you are unable to work due to injury or illness allows your child to continue on with their private school studies uninterrupted. The cost is determined in part by how long the insurance company is on the hook to pay you your salary. Although having protection until retirement is ideal, shortening the benefit period to the number of years you expect your child to be in private school will reduce your costs. With disability insurance it is important to remember that it will only replace a percentage of your income every month (usually up to a maximum of 70%). So if your household budget is maxed out this type of protection alone may not be enough.
Critical Illness Insurance
A diagnosis of cancer or suffering a heart attack or stroke can dramatically decrease your family's income and also increase expenses such as medication and treatment. Critical illness insurance helps to quickly bulk up your family's cash reserves so you or your spouse can focus on recovering from the illness. The insurance benefit can also make up for the percentage of income not covered by disability insurance and cover part of the waiting period before disability benefits kick in. This type of insurance should also be considered for your child as well, since if your child becomes ill both you and your spouse may want to stay home from work as he or she recovers. Just as with the life insurance, term versions of critical illness can provide additional protection on you, your spouse and your children at a lower cost.
Investing in your child's education with the proper protection in place ensures that your family's sacrifices are rewarded with a child engaged in learning and loving the school they attend. No matter what health events take place–with the right protection established–your child will remain enrolled in the private school your family carefully chose.