Importance of Health Insurance for Students Abroad

Studying abroad is one of the exciting experiences in a student's life. You are preparing yourself for a new environment, like a new country, new people. Etc. However, while you prepare for your student journey abroad. One important thing that cannot be overlooked is Health Insurance.

Unexpected health issues can arise at any time, and in a foreign country, healthcare costs can be extremely high. Having the right health insurance can help you in such adversities. It gives you financial protection and peace of mind.

In this blog, we will break down the detailed aspects of health insurance, the benefits of having the right health insurance for abroad students, and where and how to get one.

What is a Student's Health Insurance?

Students' health insurance is also called as students' overseas plan. This product is exclusively designed for students going to a foreign country for higher education.

Apart from the general medical coverage, these policies generally come with additional benefits, which we will learn about further.

Why a Health Insurance Important for International Students?

Health services in countries such as the USA, UK, Australia, and Canada are quite costly. The simplest consultation or a prescription may cost a few hundred dollars. And without insurance, an accident or a disease would become a huge cost. Hence, a student health insurance plan is necessary.

Major Advantages of Health Insurance in a Foreign Country.

Hospital bills are not the only thing that is covered by health insurance. The correct plan will save you on several occasions when you, as a student, never even considered that it might happen until the point when it happened.

1. Good Hospitals: Insurance guarantees access to quality and timely care.

2. Reduced Stress & Increased concentration: You will no longer have to worry about medical emergencies and focus on your studies.

3. Medical Emergency Coverage: It could be a sudden fever, food poisoning, or a severe accident, and your insurance will help you receive the treatment without thinking about the expenses.

4. Cashless Hospitalisation: A majority of insurers are connected to hospitals in foreign countries, and you can receive treatment without paying a down payment, as the insurance company will cover the cost.

5. Mental Health Support: Most of the current policies include mental health treatment and counselling lessons - a great advantage to students when it comes to adapting to a new environment.

6. Medical Repatriation and Evacuation: Your plan can cover the fees of flights and evacuation in case you ever have to travel home due to a medical reason.

7. Coverage of Travel Problems: Other student health plans even cover some travel-related coverage, such as trip delay or lost baggage.

Where to Buy Health Insurance to Study Abroad

Health insurance may be provided by three sources, namely your university, locally provided abroad, or Indian insurers that have their global student plans.

1. University Health Plans

Health insurance is a direct addition to your tuition fees in many universities, particularly in the US, Australia, and Canada. Such plans are accepted in all areas of the campuses and comply with the local rules.

Pros: Simple and reliable.

Cons: In many cases, more expensive than alternatives in the private sphere.

2. Local Destination Country Health Insurance

It is also possible to buy insurance with local vendors once you get to your country of study.

Examples:

• USA -ISO, Aetna Student Health, Compass.
• UK -NHS cover for student visa holders.
• Germany – TK, AOK, Barmer

Pros: Local medical system customised.

Cons: Prices can change; there are plans with limited eligibility requirements.

Top Indian Insurance Providers Offering Overseas Student Health Plans

India has a number of reputable Indian insurers offering a wide range of overseas health plans to abroad-bound students.

Popular options include:

• Axis Bank: Student Guard - Overseas Health Insurance plan

• ICICI Globetrotter - Overseas Individual Student Travel Insurance

• SIB: Travel companion

• HDFC- Ergo Student Suraksha Insurance Plan

• Tata AIG Student Guard - Overseas Health Insurance

• IDFC partnered with other insurers.

• HDFC ERGO Student Suraksha

• Bajaj Allianz Student Companion.

Pros:  cheap, customizable, and may be bought in advance of your departure from India.

Cons: It might require pre-authorisation in some hospitals overseas.

Education Loans With Health Insurance

Health insurance is usually included in the loan package when students take an education loan to study abroad. This coverage is provided by many private banks and NBFCs (Non-Banking Financial Companies) to cover students against unexpected medical costs when they are abroad.

This aspect does not just give students and parents the benefit of having financial security in case of medical emergencies, but also gives them the peace of mind during the course of study.

Banks and NBFCs that Provide Education Loans with Health Insurance cover

Private Banks:

• ICICI Bank

• IDFC FIRST Bank

• South Indian Bank (SIB)

• Axis Bank

NBFCs (Non-Banking Financial Companies):

• Avanse Financial Services

• HDFC Credila

• InCred Education Loan

• Auxilo Finserve

These Financial Institutions provide health insurance as part of their education loans or provide it as an option in collaboration with well-known insurance companies. The insurance normally covers medical emergencies, hospitalisation, and contingencies related to health throughout the period of the study abroad. Request a call back from WeMakeScholars to get your health insurance and education loan covered at the same time.

Is Indian Health Insurance Legal Overseas?

Although Indian insurers and loan-based policies do provide international cover, not all local health insurance programs are accepted in foreign hospitals. You should check to see whether your plan has:

• An international network of hospitals that accepts and identifies cashless treatment.

• Tie-ups with foreign insurance partners to facilitate claims.

• Coverage to suit your university or visa needs in your destination country.

In case your Indian policy is not readily accepted abroad, you can still reclaim the reimbursement at a later time by providing the necessary documents.

In order to avoid these problems, one should ensure the confirmation of the international tie-ups and claim process of the insurer before travelling.

How to Select the Health Insurance Plan

You should cross-examine plans before finalising your travel with a few minutes to read the fine print and select the plan that offers you the most favourable combination of coverage and cost. 

In most countries, health insurance is a prerequisite for getting a student visa.

You should compare your options before purchasing a plan. Here’s what you should check:

• University requirements: There are those universities where minimum levels of coverage are stipulated.
• Check coverage: Make sure that the plan includes hospitalisation, emergency care, and pre-existing conditions (where necessary).
• Emergency help: A 24x7 helpline worldwide is required.
• Deductibles and co-pay: Figure out the amount that you need to pay before insurance covers you.
• Extra benefits: Add-ons: Dental, vision, maternity coverage, etc.

Conclusion

Health insurance may not sound like the best part of your study-abroad preparation, but it is one of the most important. It will safeguard you against unforeseen expenses and guarantee that you will be able to receive quality health care when you need it. In this blog, we have covered the importance of Health Insurance for international students, in addition to how and where to get one.