Company offers tuition insurance for college students, parents

LOS ANGELES (KABC) -- These days it can be rare for a college student to finish college without taking a break at some point.

The student may withdraw for health reasons, a change of goals or stress and anxiety, and it can all happen after tuition, room and board have been paid.

Joe Mason, with Allianz Global Assistance, is a leader in insurance and personal services. For the first time in California, he said Allianz is offering a way to get back some or all of the college costs a student spends if they end up taking a break. It's called tuition insurance.

"Tuition insurance provides reimbursement to parents or students for nonrefundable expenses that they would incur in the event that the child has to withdrawal from school," Mason said.

He added that his insurance covers almost every reason for withdrawal depending on which plan is chosen. But one exception is if the student flunks out of college.

The cost of the plan can run as little as $29.95 and will pay up to $2,500, while two other plans offer more extensive coverage.

Applications for tuition insurance can be done online, and students have to purchase it before the school term begins to be eligible for certain benefits.