Death and Insurance

Q: What if a account owner dies before the installments on a contract are fully paid?

A: The Florida Prepaid College Plan offers a group term life insurance on the life of the account owner, survivor and/or the student beneficiary through the Fidelity Security Life Insurance Company. Please call 1-800-552-GRAD (4723), prompt 4, for additional information.

If an uninsured account owner dies before the contract is paid in full, and if no provision has been made for contract payment, then the survivor or another individual will be required to make payments to maintain the contract. If no payments are received, the contract will be terminated and money paid into the plan will be refunded to the estate of the account owner.

Q: What if the student beneficiary dies or is disabled before attending college?

A: The account owner may transfer the Florida Prepaid College Plan contract to a surviving sibling or request a refund of the amount paid into the plan. In the case of death or disability, the cancellation fee will be waived, and the account owner will be refunded an amount equal to the current rates at state postsecondary institutions.

Q: If the original account owner is deceased, who may apply for a refund?

A: If the contract was purchased jointly, all rights of the account owner are passed to the surviving survivor. In the event of a single account owner, or death of the account owner and survivor, the contract is considered an asset of the account owner's estate, and all rights are passed to the executor of the estate. As the estate is settled, the heir(s) to the estate may request and receive a refund.

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