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Is Loss Of Employment A Covered Reason For Tuition Insurance?

Updated

It depends on your plan. Loss of employment can be a covered reason for withdrawal if the tuition payer is terminated or laid off from a current, permanent position through no fault of their own — on or after your plan’s Policy Effective Date.

To confirm whether your plan includes this, check your Declaration of Coverage.

What can qualify as a covered loss of employment?

For a loss of employment withdrawal to be considered, the following must apply:

  • The person paying tuition is terminated or laid off from their position
  • The termination is due to no fault of their own. Voluntary resignation, retirement, and dismissal for cause do not qualify, see section below on what is not covered for further details.
  • The employment was a current, permanent (not temporary or contract) position at the time of termination
  • The termination occurs on or after the Policy Effective Date shown on your Declaration of Coverage

How do I know if my plan includes this covered reason?

Not all plans include loss of employment protection. To confirm whether yours does:

  1. Log in to your account at account.gradguard.com 
  2. Locate your Declaration of Coverage 
  3. Review the covered reasons listed for your specific plan 

You can also call us at 877-794-6603 and our team can confirm your plan’s details.

What is not considered under loss of employment?

The following employment situations are not protected:

  • Voluntary resignation — choosing to leave a job
  • Retirement
  • Termination for cause — this can include dismissal due to performance, conduct, or policy violations
  • Employment loss that occurs before the Policy Effective Date
  • Loss of freelance, contract, or non-permanent employment

Terms, conditions, and exclusions (including for pre-existing conditions) apply. Plans only available to U.S. residents and may not be available in all jurisdictions. Insurance benefits are underwritten by Jefferson Insurance Company. GradGuard, a service of Next Generation Insurance Group, LLC (NGI), is the licensed agent for all insurance programs. Plans include insurance benefits and assistance services. Non-insurance benefits/services, and claims administration, are provided by AGA Service Company.

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