Paying for private education

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It's no secret that fees for a child to attend private school can be significant. The rising popularity of private education in Australia leads to the inevitable question: What would happen to your children's private schooling if you are no longer around to pay the fees?

What does it cost?

In 2011, a third of primary and secondary students in Australia attended a non-government school. According to the Australian Bureau of Statistics (ABS), in the 10 years to 2011, the number of students enrolled in Independent schools had increased by approximately 34.6% and those in Catholic schools by approximately 11.6%. During the same period, government schools only showed an increase of 1.8%i.

Life insurance can help keep the dream of private education for your children.

The growing popularity of private education is of course accompanied by school fees. At the top end of the market, a private education can cost a parent a staggering $29,000 a yearii. While this figure reflects the cost of a child attending Australia's most expensive school - Geelong Grammar in 2009 - at many private schools parents can expect to pay about $21,000 for their child's year 12 tuition feesii. Not only can school fees be costly, but many schools have an increasing fee structure so as your child progresses from year 7 to year 12, the amount you pay increases. On top of that, a large proportion of private schools increase their fees annually so that a Year 7 student starting this year may pay more than another who started Year 7 the prior yearii. In addition to school tuition fees, there are also the costs of stationery, transport, uniforms and other school-related expenses.

Education costs can add up, with private education estimated to cost parents $500,000 by the time their 2011-born baby graduates from high school.

According to the Australian Scholarships Group (ASG), educating a baby born in 2011 in the private school system could cost almost $500,000 by the time that child has finished his or her Higher School Certificateiii. Even at a Catholic school where annual fees are generally cheaper than in an independent school, the ASG predicts that same child's education to cost $226,087iii. These figures are just for the one child: parents with two or more kids should expect to pay more.

Why you need Life insurance

The costs of educating your child at a private school can add up. If private education is something that you want for your children, unforeseen death, accident or illness could make this dream difficult or impossible to afford. By having adequate life insurance, you can leave a legacy for your children. Get a quote from Allianz online today and see how Life Plan cover can help to keep you financially secure and that your children's educational opportunities are not compromised in the event of death, critical illness or disability that leaves you permanently unable to work.

i Australian Bureau of Statistics, 2012, Schools Australia 2011,

ii Perkins, M., 2008, Schools Fees Rise to $29,000, The Age,

iii Speranza, L., 2011, $500,000 a child: how much private schooling costs parents, The Sunday Telegraph,