Understanding the pricing disparity between domestic and international health insurance plans is essential. Any student who intends to study abroad should fly with a health insurance policy. A parent or guardian has to secure the necessary insurance for them. When picking one, you must decide whether to choose a domestic insurer or a foreign insurance provider.
The most important factor to consider is that every student who travels overseas, especially to well-known locations like Australia, the United States, or Canada, must have health insurance. So let's compare the costs in this instance to see what would be different if you choose domestic insurance rather than the one the university offers.
Why is Choosing Domestic Health Insurance Sensible?
The cost of health insurance can be high, especially if you travel abroad. In the US, medical expenses can be exceptionally expensive, and having insufficient health insurance can be extremely expensive. However, when you look into the insurance plans provided by foreign universities, you'll find that the coverage is not only pricey but occasionally insufficient.
What if the University We Have Chosen Doesn't Mandate Health Insurance?
Many universities in the UK and closer to home, such as those in Singapore and Malaysia, do not require students to get insurance. However, sending your child overseas without travel or health insurance is not a good move if you want to ensure they are protected in an emergency.
What Happens if the University Refuses to Accept the Health Insurance of the Home Country?
Some international universities do not permit you to carry domestic insurance. It would help if you accepted the policy being offered to you then. In that case, research the insurance options provided by the chosen university before enrolling your child in college, and then get a domestic insurance policy to cover the areas this does not, such as travel insurance, third-party liabilities, and sponsor protection.
Factors to Consider When Picking the Most Suitable Policy
Check the Coverage - If you have the option to purchase health insurance from your home country, the policy should be designed to cover all potential medical costs and emergencies for the duration of your stay. Find out which hospitals are on your insurance company's list and how far they are from the location where your child will stay. Consider looking out for other crucial elements, such as personal liability, accidents, and baggage loss insurance, which would be covered by default if you bought a complete health insurance plan.
Many health insurance companies now include provisions in their insurance policies that address damage to the student's property, racial discrimination, criminal assault, a compassionate family member visiting the student in the event of hospitalisation, and reimbursement of tuition fees in the event that the student is unable to complete the course due to a medical condition.
Make Comparison- If you are studying in a western country; then university insurance is substantially more expensive than domestic insurance. For instance, the yearly cost of the $300,000 basic health plan at Columbia University is $2,157 (or INR 1,29,420 at INR 60/$). On the other hand, ICICI Lombard, a domestic insurer, offers products with a cover of $500,000 for a yearly premium of INR 46,851.
The regulations alter if you are closer to home, like at China Medical University. Each year, the college costs 600 CNY (Chinese Yuan Renminbi), or INR 6,000 (at a rate of INR 10/CNY).
In this instance, a domestic insurer will charge you about INR 7,500 for coverage. Choose a plan, but don't base it solely on price. Instead, compare the benefits and the cover of how to gain size.
Some Key Considerations- Since you will be visiting a foreign country, take into account amenities like cashless facilities, network hospitals close to your school, claim resolution processes, and an insurer's track record.
The deductibles and sub-limits are further vital considerations. The deductibles for university insurance are typically higher. For instance, the domestic insurer's plan has a sub-limit of $100 (INR 6,000), whereas Columbia University's plan has a deductible of $500 (INR 30,000 at INR 60/$). This means that if you are hospitalised and have a $1,600 (INR 96,000) hospital bill, the university plan can only pay $1,100 (Rs 66,000), whereas the Indian insurer will fund up to $1,500 (INR 90,000) of the exact cost.
Additionally, the university plan will solely cover health care. Domestic health insurance includes lost luggage and lost passport coverage as part of its travel insurance package.
Keep Their Existing Health Insurance Policy Continued
Do not stop paying the premium if your child has a health plan or is protected by a family floater health insurance policy. This cover is the basic plan for them. A standard health plan in India offers everlasting renewability, unlike the student plan, which will only last for a few years while studying. Therefore, don't terminate the coverage unless they intend to relocate abroad. When they come back, they will be older, and your cost to purchase new coverage will be higher.
Conclusion
After carefully reviewing every critical factor that has to be included in your child's health plan, you should cautiously review the terms and conditions of the finalised plan. You may occasionally realise that a company is trying to sell you a health insurance plan by charging excessive premiums without ensuring the correct and fast fulfilment of the promises made. Therefore, choose effective, thorough, and highly flexible insurance to save your youngster from any difficulty.
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