Skip to main content

Buying a policy in India is cheaper for Students going abroad for studies

Students going abroad for studies need to have an insurance cover.

And the good news is that purchasing the cover in India, if the country or the university allows you to do so, is a cheaper option.

In countries like Canada and New Zealand, universities themselves offer cover to their students. In fact, the cover is included in the tuition fees. These universities do not accept insurance purchased by a student in his/her home country. But one can buy an extra cover from India, too.

The university may not mandate that insurance purchased by a student provide coverage in these areas. But, such additional coverage is helpful. For instance, coverage for medical expenses related to mental disorders may be useful if a student suffers from depression or stress and needs medical aid.

Universities in the US and the UK are more flexible and allow students to buy insurance from their home country, provided it satisfies the requirements of the university. Rasika Iyer, set to travel to the UK this September for her higher education, seems convinced by the logic. As she puts it, After spending a huge amount for my studies in the UK, a little extra expense to cover medical emergencies seems worth it. The policies offered by Indian companies like Tata AIG, Bajaj Allianz and ICICI Lombard are accepted by most universities in the US. Even if purchasing university insurance is compulsory, students usually prefer to take an additional policy from India.

It makes sense to do so, say financial planners. A major portion of the insurance offered for students covers medical costs. This is a big benefit if you consider how expensive medical treatment is outside India,.

The waiting period at public hospitals can be very long sometimes. When the student cannot afford any delay in treatment, he can use his Indian insurance policy at a private hospital.

If you have an option to choose between Indian and university policies, purchasing a student insurance policy in India will prove to be more cost-effective. It will cost you approximately onethird the amount you will have to pay for the university insurance.

For a sum assured of $100,000 and upwards, a two-year insurance cover from the university costs Rs 27,000-36,000 ($600-800 per year), at the rate of $1=Rs 45. Indian insurance policies will charge anywhere Rs 7,000-19,000 (between $ 150 and $425) for a similar policy.

The university insurance mostly covers only medical expenses, and in certain cases, dental expenses. However, student insurance policies available in India offer certain benefits over and above the medical coverage like:

Study interruption

Say, you meet with an accident and cannot pursue your studies further because of medical reasons. In this case, the insurance company will reimburse the tuition fee paid for that semester.

Sponsor protection

If your parent or guardian who is financing your education expires, the insurance cover will ensure your studies are not interrupted. You will be entitled to tuition fees payable up to a certain limit, specified in the policy.

Compassionate visit

In case you get hospitalised for more than seven consecutive days, the insurance company pays for the return air fare for one of the parents to visit you. Similarly, if either of your parents gets hospitalised in India, your return air fare is covered.

Repatriation of remains

If a student dies while studying overseas, expenses incurred for repatriating his remains to India will be taken care of by the insurance company.

So, go ahead and choose an insurance product that best suits your needs. It will go a long way in ensuring that you have a smooth sailing during your education years abroad.

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Good time to invest in Infrastructure Funds

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...

Floater Health Insurance Policy

Floater policy helps in covering your entire family under the umbrella of one policy with one sum as a premium and one sum as insured. It helps in covering all kind of costs as covered under medicalim. The only difference is that the cover is now valid for the family instead of one individual.   If need arises, floater policy can be used by any member of the family numerous number of times. The biggest benefit of this policy is that it helps in saving money by allocating the cover to various members of the family.
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now