QBE has introduced a policy that covers parents against the risk of defaulting on their children’s private school fees if they lose their job or suffer injury or disability.

Unlike typical income protection, School Fee Protect Insurance has no waiting period, does not consider occupation type and will pay benefits in addition to other income.

The product was developed following consultation with headmasters and bursars from fee-paying schools. About 1.3 million children attend private schools, with fees for a year 12 student at a metropolitan school ranging from $6000-$40,000.

“This is creating enormous financial stress on ordinary families who pay… to send their children to non-government schools,” QBE GM Consumer, Affinity and Banking Partnerships Eleanor Debelle said.

“Those parents will now be able to take out school-fee insurance as a safety net.”