Cover your international travel

Unlike in India, a bill for treatment in other countries can be prohibitively expensive. You should have an insurance policy with your visa.

As thousands of students across the country gear up for different stages of their international university application processes, they need to take a closer look at insurance requirements. Especially, health insurance; it needs to be taken seriously.

REQUIREMENT
Students should remember that health insurance coverage is a vital component of the international study experience. The conditions vary between countries and universities. Most universities in the US require insurance cover for students and their dependents because of the prohibitive cost of medical care in that country.

The next task involves selecting the source of the insurance. One route is through the set-up of the foreign university, which has a tie-up with local insurance companies and health care providers. The other option is to look at student insurance policies offered by companies in India. In many cases, a student is required to enroll with an insurance plan specified by the university, which removes the choice. If a student opts for a plan similar to the one specified by the university, they need to fill in the medical insurance waiver form and give it in by the due date for approval. If this is not done, they might be billed for the university insurance plan even when they have other insurance. Insurance companies in India also have a provision for refund of premium if the foreign university does not grant insurance waiver.

COST
The most important point that students will be comparing in their insurance plans is cost. In many cases, it is lower if the policy is purchased in India. However, there might be conditions where the university plan is better. A general search showed that the cost could vary between Rs 13,000-46,000 a year, for various levels of coverage, for the student in the US from a policy taken in India. The cost is likely to be lower in other countries, especially in Europe, where a similar search showed a range between Rs 8,000-15,000. However, the final cost will depend upon specific conditions, so students need to check the applicable figure.

INSURED AMOUNT AND COVERAGE
The insured amount can vary from $50,000-500,000. One of the main factors that determine the figure is also the requirement of the university. The basic factor is that there should be adequate coverage in case of any need. Most will be studying for two to four years and this is a long enough period.

More important than the amount of coverage are the various areas that are eligible for coverage.

This would include areas like impatient treatment, dental coverage, outpatient benefits, mental health therapy, maternity services and so on. The wider the coverage, the better.

DEDUCTIBLE AND CO-PAY
The issue of co-pay, as well as deductible, is important; these terms determine additional cost. Unlike a local health insurance policy, where the entire issue is whether the claim has been passed or not, there is a further cost in a student policy, even when the insurance company agrees to pay. A deductible is a situation where the claim up to a certain figure has to be paid by the person insured. For example, a policy where the first $500 is to be paid by the policy holder.

This is to ensure there are no small claims made on the policy. A co-pay is a situation where a specific amount of the out-of-pocket expenses, like doctor visit and medicine costs, has to be paid by the policy holder. So, if the expense is $400 and the co-pay is $100, then the insurance company will pay only $300. Both these are expenses for the student and this figure is often linked to the premium, so lower the deductible, the higher the premium on the policy.

The writer is a certified financial planner