As your child prepares to embark on their college journey, you’ve likely spent countless hours helping them choose the right school, shopping for dorm essentials, and discussing academic goals. 

However, there’s another crucial aspect of college preparation that often goes overlooked: legal, financial, and insurance planning. 

In this article, we’ll explore the essential documents and insurance coverage that every parent of a college-bound student should consider.

1. Health care proxy / Medical Power of Attorney

When your child turns 18, they’re legally an adult. This means you no longer have automatic access to their medical information or the right to make medical decisions on their behalf.

• What it does: A Health Care Proxy allows your child to designate someone (typically a parent) to make medical decisions for them if they become incapacitated.
• Why it’s important: In a medical emergency, this document ensures you can step in and make critical decisions for your child’s health and well-being.

2. HIPAA authorization

The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of medical information for individuals 18 and older.

• What it does: A HIPAA Authorization form allows healthcare providers to share your child’s medical information with designated individuals.
• Why it’s important: This document ensures you can stay informed about your child’s health status, especially in emergencies or if they’re dealing with ongoing medical issues.
  

3. Durable power of attorney

A Durable Power of Attorney is a powerful tool that can help you assist your child with various financial and legal matters while they’re away at college.

• What it does: This document allows your child to designate someone to handle financial and legal matters on their behalf.
• Why it’s important: With this authority, you can help manage bank accounts, sign leases, or deal with college administration if needed.

4. Academic records release / FERPA waiver

The Family Educational Rights and Privacy Act (FERPA) protects the privacy of student education records.

• What it does: An Academic Records Release or FERPA waiver grants parents access to their child’s academic records.
• Why it’s important: This document allows you to monitor your child’s academic progress and offer timely support if needed.
  

5. Term life insurance for college students

While it may seem premature to consider life insurance for your college-bound child, it can be a crucial financial safeguard, especially if you’re co-signing student loans.

What it does: A term life insurance policy provides a death benefit if the insured person passes away during the policy term.

Why it’s important:

• Covers outstanding student loan debt: If something were to happen to your child, you wouldn’t be left with the burden of their student loan debt.
• Protects co-signers: If you’ve co-signed on your child’s student loans, a life insurance policy can protect you from being responsible for the debt in the event of your child’s death.
• Affordable option: Term life insurance for young, healthy individuals is typically very affordable, often costing less than $20 per month for substantial coverage.
• Locks in insurability: Getting a policy while young and healthy ensures coverage, even if health issues develop later.

How much coverage do you need? Consider a policy that covers at least the total amount of anticipated student loan debt. You may want to add extra to cover potential future expenses or debts.

The importance of planning ahead

While these topics may feel uncomfortable to discuss, it’s crucial to have these conversations before your child leaves for school. These planning documents and insurance coverage serve as a safety net, ensuring that you can provide support and protection when your child needs it most.

Steps to take:

1. Have an open conversation with your child about the importance of these documents and insurance coverage.
2. Consult with a local attorney to ensure the legal documents are properly prepared and comply with your state’s laws.
3. Speak with a licensed insurance professional to determine the appropriate amount of term life insurance coverage.
4. Keep copies of all documents in a safe place, and make sure your child has copies as well.
5. Review and update these documents and insurance coverage periodically, especially if circumstances change.

Sending your child off to college is a significant milestone filled with a mix of emotions. By taking the time to put these essential planning documents and insurance coverage in place, you’re providing an extra layer of protection and support for your child as they navigate this new chapter in their lives.

Remember, the goal isn’t to hover or control—it’s to be prepared and able to help when it matters most. These precautions offer invaluable peace of mind, ensuring that you can continue to be there for your child, even as they spread their wings and embrace their independence.

Are you ready to have this important conversation with your college-bound child? The security and protection these documents and insurance provide are invaluable, setting a strong foundation for your child’s bright future.