What happens if your varsity child suffers a major health setback?

Published on 28th June, 2023 at 04:29 pm

Tertiary education is costly, even with financial aid or bursaries, so it’s crucial to consider the financial implications of missed classes and the duration of extended courses, along with medical costs and potential income loss, in the event of a major health event for your tertiary education-bound child.

Reading time: 3 minutes

In this article you’ll learn:

• What options students have.
• How to manage the financial impact and potential setbacks.
• Who qualifies for the Graduate Student Package.

What options do students have?

In cases where an extended period of illness prevents a student from participating in learning activities and assessments, the only option might be to cancel their studies for the moment, says Prof Willem Conradie, Deputy Dean: Faculty of Science at the University of the Witwatersrand.

“Universities are typically understanding in such situations and will reinstate the student’s registration when they are able to resume their studies,” he explains. “Fee refunds in such cases are governed by the university’s policies and depend on how far the semester or year is advanced at the time of cancellation.”

Managing the financial impact

In these circumstances, associated financial commitments would undoubtedly place major pressure on both the student and their family. “Because we understand the benefits of studying further, we’ve extended our Graduate offering with a new Graduate Student Package so we can support graduate clients even before they start working,” says Karen Bongers, product actuary at Sanlam Risk and Savings.

“Where a student’s degree will provide them with financial opportunities once obtained, their Graduate Student Package will provide them with valuable financial protection en route to the qualification.”

Who is eligible?

Full-time students under the age of 30, who are studying towards a three-year degree or four-year diploma (NQF Level 7) are eligible for this package from their second academic year.

“The Graduate Student Package provides comprehensive cover for disability, impairment, severe illness and even death. It includes various events that can be caused by an accident, for which young people have a relatively higher risk, as well as illnesses like cancer, which is not a respecter of age,” says Bongers.

“The pay-out [of up to R400 000 depending on the option] from the package selected can provide invaluable protection to help cover the costs associated with the illness or injury, and relieve financial stress. In the event of death, the pay-out can also protect the student’s loved ones from the burden of any unpaid student debt they may leave behind. From as little as R90 per month, the package is a small investment towards a whole lot of protection.”

Wondering what the difference is between severe illness cover and a cancer benefit, and whether you need both? Read more here.

Cover that can last a lifetime

The cover included in the Graduate Student Package provides valuable first layers of cover that can be kept for a lifetime. “An important consideration when designing the package was to ensure it offers quality cover that remains suitable when the student starts working and continues for their whole life,” Bongers explains. “This means they can merely add to their cover in line with their starting salary, as opposed to replacing it with a new policy when they enter the workforce.”

When you or your qualifying varsity child take out the Graduate Student Package, you automatically earn Wealth Bonus, Sanlam Group’s monetary reward for long-term wealth, at no additional cost. Because Premier risk products are participating Wealth Bonus products, every time you pay a premium, Sanlam contributes to your Wealth Bonus, which eventually unlocks at certain milestones and pays out in cash. Find out more here.

Good money habits

Signing up has the added benefit of encouraging financial literacy in young people sooner to help cultivate good money habits even before they start working.

“Too many young people, after having studied toward a tertiary education, enter the workforce without giving thought to protecting the income they’ve worked so hard toward,” observes Bongers. “The Graduate Student Package lays the foundation for a risk cover portfolio to further build on when the student starts working, paving the way for a life of financial confidence.”

To find out what type of insurance is best suited to you, your life stage, and financial circumstances, or how comprehensive you cover is, speak to a financial planner.