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Expert: Rising private school fees make insurance "extremely useful"

Posted on 16th July 2008

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It is "extremely useful" for parents to take out private school insurance in the current economic climate, an expert has suggested.

According to independent financial adviser Kevin Tooze, with the credit crunch in full flow and independent school fees on the up, it is advisable to take out an income protection policy.

Mr Tooze, who specialises in school fees plans as managing director of Equity Partners, stated: "If you want to protect the income that you earn, which is enabling you to pay school fees, you really need to look at an income protection policy."

However, he cautioned that as most of these policies cover around two-thirds of a parent's income, they should ensure that it is indexed, "otherwise it's not going to keep anywhere near the rate of increases, as we've just experienced with schools".

Halifax Financial Services recently released figures that suggested that private school fees have risen at over twice the rate of inflation over the last five years.
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