With the rising costs of tuition fees, insurer LV= has urged parents to consider income protection insurance if their children are heading to university.
According to the new Cost of University study from LV=, university students starting degrees this September will be left with £53,330 of debts by the time they emerge three years later into the job market.
Alongside tuition fees of £26,310 over three years, accommodation will average £12,500, and food £4,300. Essentials such as household bills, books and travel expenses further increase the cost of attending university.
In contrast, the average student graduating in July this year would have owed around £23,000, according to separate figures from Push.co.uk.
The research by LV= shows that less than one in ten students will be meeting the costs of university themselves. One fifth of parents said they are intending to cover the entire cost of their child’s education.
Consequently, LV= is encouraging parents with children going to university to seek help with their finances. Head of protection Mark Jones says:
"The huge cost of attending university makes it a massive financial commitment either for parents or students themselves."
"If parents are planning on helping their children cover the cost of university it is wise not only to look at the savings they expect to have in place, but also discuss the need for life cover and income protection, which can provide invaluable financial security for families should circumstances change."
Income protection insurance will replace your income if you are unable to work because of accident, sickness or unemployment. The monthly pay out usually totals up to 70 per cent of your salary, and is completely tax free.
With income protection, parents who are helping their children meet the costs of university would be able to maintain their standard of living if their income was unexpectedly cut off.
© ActiveQuote Ltd. 2012