1. Product Name (__________ Insurance)
2. Populations that product/service would protect. If not obvious explain population vulnerabilities.
On average, just 58 percent of students who started college in the fall of 2012 had earned any degree six years later, according to the National Student Clearinghouse Research Center. Low-income, first-gen, and students at for-profit four-year schools and two-year community colleges are at even higher risk of not completing their degrees. These students will be saddled with student debt without the earning potential to pay it off, and they're more likely to end up in default. (Source: NPR)
3. Impacts that the product/service would protect against.
Tuition Insurance would protect against the need to drop out of college because of a temporary inability to pay the cost of tuition.
4. Trigger event that would result in a claim.
A documented loss of income, loss of scholarship or loss of aid.
5. Scope and nature of the insurance response (e.g. it could be a cash payment or could include services or a combination)
Policy would provide bridge payment to cover the cost of 1 semester, defined as enough coursework to stay actively enrolled, coupled with counseling that combines academic and financial support, such as job search help.
6. Thoughts on why this would be a compelling product.
One of the biggest reasons students drop out of college is an inability to pay to keep attending. Helping students to bridge the gap to the next semester when they've encountered a financial rough patch may be enough to keep them enrolled through to completion.
7. Thoughts on how this product would be sold.
The product could be positioned similarly to Private Mortgage Insurance and offered in partnership with universities. Students receiving a significant amount of financial aid (50%+) would have Tuition Insurance automatically added to their tuition and fees, or be offered it as an add-on.