Short Term Insurance: The Best Insurance For Students

SHORT TERM INSURANCE: THE BEST INSURANCE FOR STUDENTS

Advancements in the field of medical sciences have led to a simultaneous increase in the cost of treatment especially in countries like the US. Such high costs of treatment cause additional burden to the parents of those students who go to these countries for higher studies. Medical bill for even a simple surgery performed on an Indian student in the US could force their parents back home to take additional loan. In such situations, short term insurance could provide relief to such parents.

Short-term health insurance plans are designed for people who neither have the necessity nor the capacity to buy expensive medical insurance plans. It is meant for those looking for short-term coverage options, i.e. for up to a year. They are easy to buy and do not require the buyers to fulfill any specific criteria.

In this blog, we will outline the benefits of short term insurance and the factors that one should keep in mind while buying it.

WHAT ARE THE BENEFITS OF SHORT-TERM INSURANCE PLANS?

Saves Money

Students can buy plans that provide cover only during their stay in the US. They need not take long-term plans of 3 or 5 years. This will save them a lot of money.

Flexible

Unlike long-term plans, short-term insurance plans offer the flexibility of choosing from a wide range of plans according to one’s requirements. They also provide an extra ease of quarterly payment of premium instead of paying the full year premium upfront.

Provision for Refund

There is a provision for a refund in the short-term insurance plans in case Universities do not accept the chosen Insurance plans and insist that the students buy their own sponsored insurance plan. Students get a full waiver in such cases.

Hassle-Free Processing

Short-term insurance is marked by hassle-free processing of insurance claims. Most of the short-term health insurance policies offer cashless service in case of hospitalization due to a medical emergency. Many of them also offer cards with insurance numbers and details of the policyholder. All one has to do is show the card at the hospital or call the insurance service provider to inform them about his or her hospitalization. The rest of the formalities including payment to the hospital and paper are taken care of by the agents of the company.

No Need for Medical Check-Up

Certain long-term health insurance plans that cover serious illnesses require the client to undergo a medical check-up to ascertain whether he or she is suffering from any disease before buying the policy. This is to ensure that the patient is not already suffering from the disease and that he is not buying the policy at the last moment just to avoid paying for treatment. Short-term health insurance does not provide cover for medical conditions that develop over a long period and are mostly focused on treatment in case of injury or accident, they do not require the client to undergo a medical check-up before buying the policy.

THREE TIPS FOR GETTING THE RIGHT SHORT-TERM INSURANCE

Look for Customized Short-Term Coverage

Ensure that you take a short-term coverage plan that is customized as per your individual needs. It is also advised that you read all the terms and conditions including the types of illnesses covered, cashless facility available, provision for co-insurance, deductibles, the number of hospitals covered under the plan, and duration of the plan. Only after you are fully satisfied should you sign on the dotted line and make payment.  It is recommended to buy a plan that is both cost-effective and flexible.

Buy a Policy from your Preferred Insurance Provider

If you already know of an insurance provider with whom you have had a good experience in the past, it is better to buy insurance from it. When it comes to insurance, one should not be adventurous. If you do not know of any such insurance provider, it is better to go for those insurance providers that are among the top five insurance companies in the country.

Pick a Policy from a Verified Insurance Company, Agency, or Agent

Many times people get duped either by unscrupulous companies agencies or agents who promise to provide insurance coverage at low premiums. In India, insurance companies are regulated by the Insurance Regulator and Development Authority (IRDA). Any company that wishes to enter the insurance business has to get permission from IRDA. In case of doubt, one can visit the IRDA website and check whether the company or agency is genuine or not.

Check the Performance Record of the Insurance Company

Based on their performance, insurance companies are ranked or rated by organizations like the IRDA, CRISIL, and ICRA. These rankings are based on several factors such as the soundness of the company, the percentage of claims settled, and the promptness with which to claims were settled. It is suggested that you look for insurance companies that are among the top 10 in IRDA rankings or have a rating of not less than ‘B’ in CRISIL.

Make sure that you follow all the above useful tips to buy the right short-term insurance plan. It is very crucial to buy insurance as living without insurance coverage is a risk and an unexpected accident or illness could lead to expensive medical bills. If you are short on money or you don’t want to spend much on insurance, then short-term medical insurance might be the perfect fit for international students.