If you truly carry enough life insurance, you may not need to buy more. But, the fact is, most people don't have enough life insurance to thoroughly cover their family's future financial needs. Even if you have a carefully-constructed life insurance estate, your planning probably did not take into account the additional financial undertaking of the payments for the Prepaid contract you have selected for that special student in your life.
Florida guarantees that the Prepaid contract will cover the costs of college in the future, regardless of how high they may go. That guarantee only applies, though, if you finish making the payments for the contract. Should you die before your contract is completely paid for, someone else will have to continue making the payments or the contract will be cancelled. This insurance will fully pay off the outstanding balance due at the time of your death.
You could, of course, but this special purpose group policy has some features that are not usually available in other policies, for example:
- you never have too much or too little insurance; you have, and only pay for, the precise amount of coverage needed to pay off the balance of your Prepaid contract
- a simple online application process that requires no physical exam or meeting with an insurance agent
- a discounted joint coverage option insuring both the Purchaser and Co-Purchaser; pays the outstanding balance of the Prepaid contract in the event of the death of either person
- $5,000 of student life coverage automatically included with the option to buy up to $50,000 more.
Applying is quick and easy - no complicated application to complete and no need for a physical exam. Coverage can be purchased until age 70 and there are only two medical questions to answer.
If you answer "Yes" to either of the medical questions, you will be sent a medical questionnaire to complete and return. Your eligibility will be determined based on the information you provide on this questionnaire - no medical records or doctor's notes are generally required.
Coverage can be continued until the Prepaid contract is paid off or the premium due date next following the insured person’s 75th birthday, whichever occurs first. Optional student life insurance can be continued until the premium due date following the student's 25th birthday even if the Prepaid contract is fully paid off or cancelled. At age 25, a conversion policy is available, without medical underwriting, for the same amount of coverage.
Yes, you can cancel your insurance at any time by making a written request.
No. Your premium rate is guaranteed for the duration of your participation. This guarantee applies to both Purchaser insurance (Single or Joint coverage) and to Optional Student life insurance.
The Florida Prepaid College Plan is automatically the beneficiary of the policy to pay off your Prepaid contract.
Because this is group term insurance designed to provide benefits at the lowest possible price, the policy does not include expensive cash values and there is no provision for policy loans.
No. You can insure just the Tuition or just the Dormitory contract.
You must apply and meet all of the policy’s qualification rules and pay the premium for your now current age.
This insurance has been designed specifically to pay off your Prepaid contract(s) so additional insurance is not available. You may, however, add life insurance for the student.
Coverage can be purchased for either the Purchaser or the Co-Purchaser alone.
Many families rely on two wage earners. The reduced family income resulting from the death of either one could create financial hardship for the survivor. And, of course, there is no way to forecast whether you or your Co-Purchaser might be the first to die.
No. Under the Joint life option, benefits are paid on a first-to-die basis i.e., the first death triggers payment and the surviving adult becomes the owner of a fully paid-up Prepaid college contract.
You have the option of keeping the coverage on the original Co-Purchaser. This is often what happens in the event of divorce. Or, you may apply for coverage on your new Co-Purchaser. The new Co-Purchaser must meet all of the policy’s qualification rules and pay the premium for their age.
Only a Purchaser or Co-Purchaser may be insured.
No. You may insure just the contracts you wish to cover.
No. You must qualify for and purchase separate insurance on each contract
Coverage must be purchased individually for each contract and each child.
You do not need this insurance because your contract is fully paid up and you have no outstanding balance that requires coverage. You can, however, still apply for optional student insurance in amounts of as little as $5,000 or as much as $50,000.
The primary purposes of student life insurance are to:
- provide funds for burial and final expenses, and
- start an insurance estate for the student.