Pavilion Insurance Network said it has launched a product to cover university fees in the event of students being unable to complete their courses.
Pavilion said the product, called Studentguard, was designed to provide peace of mind for both students and their parents.
Studentguard will pay out a sum of money for each year or part of year completed by a student in compensation for the cost of failing to complete their degree due to illness, accident or death.
Pavilion said the policy, available in three levels of cover, was available to all UK residents between the ages of 16 and 55 who are registered full time at a recognised university for a minimum of three years.
Cover is available through a one-off charge, with the premium starting from £1999 for the lowest level of cover. Pavilion said an additional charge was added for policyholders wanting to spread the payments over three years.
Students or parents can purchase the policy up to 18 months after a course beings, although a surcharge is applicable, said the company.
