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-- -- college students heading back to campus this week and while many parents struggle to foot the gigantic tuition bills.
There is an extra cost -- are willing to pay to protect the investment.
It's all about protecting the money that you spend others not so sure to wish an insurance to be heard about this was typically available.
Only -- select private colleges and universities.
Joining us now in the Fox Business exclusive from Phoenix is John C is the CEO -- next generation insurance which offers grabbed a guard tuition insurance good to see John thanks for coming on to talk about this.
Thank you as I appreciate it well at a time undergrad garden state schools -- what fifteen -- as I -- it it is so expensive forget that I mean you start seeing.
Boston college and NYU at 40000 dollars a year when you look at these cost of course people want to protect our investments how do -- your products do that.
-- Terrific you know Greg -- is really the first national tuition insurance our product available in the country.
Nor are we good as it it really protects you heard and your family and your student.
Against an -- -- expected.
You know withdrawal medical withdraw -- result.
Either an illness and -- an injury so I think it's unexpected it's not drop out insurance but it's tuition assurance that will actually cover the cost of attendance.
So just like you said was 151000 dollars -- public school 35000 dollars an average for private education.
That investment and can now be to protect -- after -- -- storage insurance.
OK so what what would've protected it from my kid against if my kid were in college the start to name some of the stuff visit is it.
Illness and what kind of tell us what kind of things will get.
-- let me get a couple examples you know actually the profit tenets of -- lot more than tuition in fact.
The Greg our -- insurance program is more than covering the cost of the tuition.
It's -- remember or it's the academic cost including academic fees.
Books room and board all the -- things that you are just by chance your student gets injured her bill it develops -- during this master has to withdraw.
Instead of completing the semester we actually fund that losses as a result of that how much senator hockey -- You know it cost between 89 dollars for 5000 dollars of coverage for the year and 600 dollars for 50000 dollars a year.
I'm not everybody needs 50000 dollars -- -- but most families would really benefit from having at least 5000 dollars attrition insurance coverage a year.
Do me a favor John sell me on this so I came from a family -- come from a family of five kids we all went through college.
Nobody had tuition insurance.
Nothing bad ever happened thank goodness and and there are critics who say that this kind of insurance is unnecessary because of -- refund policies for example.
Harvard where he went to business school they apparently will refund 90% of tuition -- -- student leaves before the second week of September.
All the way down I believe it is about 25% of the student leaves in the third week of October duke -- does something similar parents can recoup 60% of their investment.
Through the fifth week of classes I believe it's 20% of the six week.
And I guess of a typical public college where tuition is less costly like.
You -- no refund at all.
Would be assessed after the first ten days of class -- -- at the most expensive schools were tuition insurance protects the largest investment the critics say the policies are more lenient.
Who is your target customer.
There are taught the art it's our target customers really the middle America the -- many of your Europe audience today.
That's actually -- for ten years or longer take -- to college education.
And I -- terrorism state as an undergraduate and you know when I went -- the -- was you and I both went to school is much more affordable.
Today because today's you for and state is 151000 dollars and after.
-- that's just -- issue.
-- they ten you know you're at risk not only their room and board the books the activity fees that you pay but also cost of tuition.
The refund policies of the schools themselves.
Is actually just one small portion of it you know the most elite schools actually have had some fairly generous refund policies.
-- reality is that for most Americans they've never been able to -- -- this risk and brag guard now makes it possible actually to ensure the risk of attending college and it's really just an alternative it's not something.
That every family would need did asteroid by if they can afford a point 5000 dollar a year.
-- and don't have to worry about losing that.
Then they -- -- our product but my recommendation is that everybody considerate they need to ask themselves two important questions one is can they afford the loss.
If their son -- daughter becomes ill and cannot complete this master.
Or two what is the schools refund pol solid in most schools are telling you tell you what that refund policy is in doctor orientation.
The great Democrat guard is that you can buyer -- insurance.
You know I'm real flexible terms -- never in any month during the term of the year and there's no preexisting conditions.
And it's something that covers the total cost of the investment want to.
Can quickly -- where we're running out of my new job but what if your child that transfers halfway through the school year to another university does the insurance transfer.
And you know no not at this time it does not.
But I should say it has -- cover a 100% for any medical withdrawals.
In -- 5% for mental health withdrawals so you know depression anxiety.
Though such issues are very serious and actually when people and squeeze -- number one reason why students do have struggle.
Well it's a choice that's out there and that's what we try and let people do -- is -- about things that are out there is opportunities John thank you very much Liz thank you John faith that the CEO of next generation.
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