Importance of Health Insurance for College Students: A Parent’s Perspective

Imagine your child struggling to find the right medical help when they are miles away from home. In a distant country, all alone, struggling with poor health. Of course, the situation is emotionally distressing. But that’s not all. It will also punch a hole in your financial wall.

The outcome? Your child may not be able to focus on studies and your finances will be drained.

But that doesn’t have to be the case for you and your child.

All you need is the right health insurance before you send your kids abroad.

Now, it is easy to get overwhelmed when it comes to student health insurance. There are so many options available in the market that choice becomes difficult. And given the many other expenses looming on the horizon, health insurance seems like an unnecessary burden.

To help you, we’ve curated this guide which will break down the what, why and how of health insurance. Plus, we have helpful tips and answers to frequently asked questions, so that you, as parents, can make the best decision for your child.

Before diving into student health insurance options, let’s take a look at…

A. The overseas healthcare landscape

When your child studies in another country, the way they get medical help can be very different from India. In India, a doctor’s visit is usually very cheap. But in countries like the United States, a visit can cost hundreds of dollars. In the United Kingdom and Australia, there are public health systems available. But international students still need extra insurance. That’s because medical care abroad can be very expensive.

Here are some helpful links to help you understand the overseas healthcare landscape.

• International student health insurance in USA
• International student health insurance in UK
• International student health insurance in Canada
• International student health insurance in Australia

With the right insurance, you can ensure that your child gets the help they need without the high costs.

B. Why get health insurance for college students?

Here’s the truth: Medical care abroad is expensive. Even a single unexpected illness or injury can lead to hefty bills. These bills can quickly snowball and disrupt your child’s education and career.

Health insurance for college students helps avoid that. Here’s how:

1. Insurance Offers Financial Protection in an Expensive Healthcare Environment

Medical care costs vary dramatically from one country to another. For instance, a simple doctor’s visit in the United States can cost between $250 and $300. This amount far exceeds the typical fee for a similar consultation in India which might range from Rs 150 to Rs 300.

Without health insurance, a minor illness or injury can lead to hefty expenses.

Now, college students often operate on tight budgets and do not have steady sources of income. For them, such unexpected costs can become a significant financial burden.

Beyond direct medical costs, many student health insurance plans offer extra financial protections. It may include:

• Reimbursement for transportation expenses to hospitals or medical facilities
• The cost of transporting the student home for further treatment, in severe cases
• Compensation for each semester missed due to prolonged hospitalization or forced return home
• Benefits for students who rely on a sponsor for their education
• Compensation towards outstanding tuition fees if the sponsor passes away, ensuring educational continuity

2. Insurance Ensures Access to Quality Medical Care When You Need It

Studying away from home means your child will encounter foreign healthcare systems. Systems that are different from what they’re used to.

Health insurance, however, facilitates access to a network of trusted healthcare providers.

With comprehensive plans, student health coverage benefits include:

• Both in-patient (hospitalization) and out-patient care
• Prompt attention for major procedures as well as minor illnesses
• Quick access to emergency services during accidents or sudden illnesses
• Cashless hospitalization, reducing the hassle of upfront payments
• Coverage for counseling, therapy, and treatment of mental or nervous disorders
• Regular check-ups, vaccinations, and screenings
• Cover for the cost of prescribed medications
• Affordable ongoing treatments for chronic or acute conditions

3. Insurance Helps Meet Regulatory and University Requirements

Many universities, both domestic and international, mandate that students have health insurance. It is often a non-negotiable condition of enrollment. Additionally, getting a student visa (for certain countries) often requires proof of adequate health coverage.

By choosing the right student health insurance plan, you can ensure that your child meets these essential requirements. It allows them to focus on studies without administrative hassles or legal complications.

4. Insurance Provides Peace of Mind for Both Parents and Students

One of the most significant benefits of having health insurance is the peace of mind it brings. When you know that your child is safe from unexpected medical bills, you can stay stress-free.

It further allows you to support them from afar without the constant worry.

This reassurance is also crucial for the student. It lets them concentrate on their academic and social life.

Also Read: International Student Health Insurance USA 2024: Complete Guide

C. Affordable insurance for college students

When your child is planning to study abroad, you have a long list of expenses to cover. Even with scholarships and study abroad loans available.

Student health insurance can thus feel like an additional financial burden. But contrary to popular belief, health insurance for college students doesn’t have to be expensive.

There are many affordable options available. Some of the affordable insurance for college students include:

D. Parents’ role in choosing insurance

As a parent, you play an important role in selecting health insurance for college students. Here are 5 ways you can contribute to the process:

1. Researching Options

With so many options available, researching student health insurance options becomes crucial. Parents should:

• Start by researching plans offered through the university and private companies.
• Consult official websites, user reviews, and insurance agents to understand the nuances.
• Compare the benefits, exclusions, and limitations of each plan.

With proper research, you can identify which policies work best for our child.

2. Understanding Coverage

Parents should ensure that the plan covers most medical services, including:

• Routine check-ups
• Emergency services
• Hospitalization
• Prescription medications.
• Pre-existing conditions

You should also verify the insurance network. It should include reputable hospitals and clinics near the study location.

• Important: Ensure the chosen health insurance for college students meets the academic and legal standards.

3. Budget Considerations

Affordability is crucial. But parents need to recognize that cheaper plans may not provide adequate coverage. Skimping on coverage can lead to higher out-of-pocket costs in case of an emergency.

So compare the premium against deductibles, co-payments, and out-of-pocket limits.

4. Handling Paperwork

Students abroad aspirants have a lot on their plates. From academics to planning their shift to another country, they are pretty busy. Parents should thus help students navigate the health insurance paperwork. 

By managing this paperwork, you ensure that all submissions are accurate and on time.

Parents should also understand the process for filing claims. This helps avoid unnecessary stress in case of emergency situations. 

5. Offering Emergency Support

A parent’s role is not limited to selecting and paying for the insurance. 

In case of a medical emergency, parents should be the student’s key support system. Even if they are miles away. 

This can be done by checking the terms of insurance beforehand and being prepared with an action plan. You should also ensure you are able to coordinate with the insurance company and local healthcare providers. 

By actively participating in the student health insurance selection process, you can help protect your child’s health and well-being. 

E. Tips for parents: Protecting students with insurance plans

Now you know the importance of health insurance for college students. So the next step is to buy the right student health insurance plan for them.

But don’t just buy the first plan you find.

Before you buy insurance for young adults, it is important to understand two things:

• The intricacies of international student health insurance
• The unique needs of students

To help you out, here are some tips from experts who understand both these things well.

1. Explore Global Coverage Plans

Look for policies that offer comprehensive medical care for students regardless of location.

• Verify worldwide coverage that includes emergencies and routine care
• Ensure repatriation and evacuation services are part of the plan
• Confirm the coverage specifics for the destination country

Such plans are ideal if your child is planning to enroll in student exchange programs or travel internationally as a part of the course.

2. Compare Different Insurance Providers

Do you think you can settle for the first insurance for young adults that you come across? Think again. With so many options, it is in your best interest to:

• Assess premiums, deductibles, and co-payment structures
• Review customer feedback and claim settlement histories
• Evaluate additional perks or benefits each provider offers

3. Check Policy Exclusions

Understanding what is not covered is as important as knowing what is included. So make sure you read through the policy documents. It will reveal any limitations and exclusions. This clarity helps avoid unexpected costs during emergencies.

4. Evaluate Emergency Services Coverage

The best test of your insurance’s worth is in emergency situations. That’s when your child would need this support the most. So make sure the plan offers robust medical care for students in urgent situations. A 24/7 helpline, ambulance services and emergency room treatments are essential.

5. Understand the Claim Process

Just having health insurance for college students isn’t enough. You also need to understand the process of claiming and using that plan. 

• Determine if claims can be filed online for quicker processing
• Learn which documents are required for filing a claim
• Check the average time for claim settlements

6. Consider Student-Specific Plans

Some insurers offer specially-designed health insurance for college students. Such plans come with lower premiums, mental health support, and coverage for sports injuries. This makes student-specific plans more suitable for the student lifestyle and budget.

7. Check for Network Hospitals Abroad

Always verify the list of in-network hospitals available in the study destination. Also, confirm if the insurer offers cashless services at these network hospitals.

Pro Tip: Don’t just stop your research at the names of the in-network hospitals. Ensure that these hospitals meet high standards of care and are well-accredited. Also, check how far these hospitals are from your child’s college/accommodation.

8. Look at Policy Renewability and Portability

Confirm that the policy allows annual renewal without extensive re-qualification. Also, check if the coverage can extend if the student moves between different countries. It is especially useful for those enrolling in courses/colleges that have student exchange plans.

Also, read through the fine print to identify restrictions that might affect coverage.

9. Understand the Premium Payment Options

Different health insurance for college students may have different premium options. Some may allow easy monthly payments, while others need you to pay the annual fee upfront.

Knowing the available payment options can help you choose a plan that fits your budget.

Also, don’t forget to check any additional fees that might apply

10. Seek Expert Guidance

Sometimes, a professional opinion makes all the difference. If you aren’t sure (or too overwhelmed), consult with advisors.

This is where GradRight – your one-stop college healthcare guide – comes in. 

F. GradRight’s insights on affordable and reliable health insurance plans

If your child is planning to study abroad, you need essential insurance for college. But not all plans are created equal.

Also, many universities offer their own insurance, but these can be expensive.

But parents do not have to navigate the complicated landscape of student health insurance alone. 

This is where GradRight comes in. With GradRight, you can find student health insurance plans that are:

• Customized to offer better coverage at lower costs (You can save up to ₹1.5 lakhs per year)
• Meets university waiver requirements
• Buy at the right time to avoid last-minute hassles

So, why pay more when you can get the right coverage for less? Reach out to GradRight for expert guidance on student health insurance.

Also read: Health Insurance Terminology that will help you understand student safety and health insurance.

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