INSURING THE KIDS' TUITION.

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Author: Young, LaurenGutner, Toddi

COLLEGE

Now that's designing a financial product to fit a need: Ted Blanch Jr., an insurance executive from Boerne, Tex., wanted to guarantee his grandchildren a college education. So he created an insurance and trust product, backed by several major insurers, that locks in four years of tuition (with or without room and board) for any school at a slight premium to today's prices for a private university.

Available for children newborn to age 5 only, the policy requires either a lump sum payment or installments over seven years. A healthy middle-aged couple would pay about $141,000 now to cover all college costs. On the payment plan, it's about $21,000 more. You can get more details about the policy at securededucation.com.

Copyright The McGraw-Hill Companies, Copyright 2005

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By Lauren Young

Edited By Toddi Gutner