It take years to prepare for your child to study abroad. It is a colossal undertaking that requires careful preparation, from obtaining prospectuses to filling out paperwork, applying for grants, writing tests, measuring costs, and booking airfares.
One not-so-minor detail is often overlooked in the midst of it all: adequate insurance coverage and child insurance plans. A lot of parents do not consider buying a child insurance plan or a life insurance plan for their kid while sending them off to abroad for their higher studies. However, buying the best child insurance plan is necessary if your kid is moving out to study in abroad. Let us understand why.
Importance of Buying Life Insurance Cover for Students Going Abroad
Different countries have different rules. For example, life insurance is required at universities in the Schengen region and the United States, it is not required in the United Kingdom, Australia, or southeast Asian countries such as Singapore and Malaysia. However, having a safety net is still a good idea.
If a parent sends his child to study in the UK, he may be covered by the National Health Service (NHS). The NHS only covers medical bills at very little cost. So, parents will want to seek insurance to cover their child's other possessions, important papers, or other third-party legal responsibility that ensure their stay is secured.
Even if your child's university or country does not need cover, it is a good idea to get one because medical expenses in developing countries are far higher than in India. A doctor's appointment in India costs Rs 150-300, costing $250-300 in the United States.
Buying Insurance from the University
International student policies vary from one institution to the next. The amount of insurance required, as well as the type of insurance required, varies. The package you purchase must adhere to the university's policies. This is why the majority of students purchase from the university. The premium is often included in the fees.
Purchasing the university-recognized insurance package is a costly choice. Still, most people prefer it because they are unaware of the laws and have no knowledge of the alternatives.
Domestic insurers spend about one-third of what overseas universities or insurers charge. The rate differential between insurance plans offered in India and those available abroad for the same coverage may be in the range of 20-30%.
University programs only cover insurance, while domestic schemes provide both medical and non-medical coverage.
On the other hand, Indian insurers have benefits such as a travel plan (which covers the loss of a passport and checked baggage), compassionate visits (which reimburses parents' travel and stay costs if the student is hospitalized).
Also, third-party liabilities, study interruption protection (which reimburses fees for every semester the student misses due to medical or compassionate reasons), and sponsor protection (reimbursement of tuition fee if the person funding the education dies).
How to Decide between Available Life Insurance Plans?
Hospital situations, relocation and repatriation, criminal injury and death, tuition charge, sponsor protection, and travel can all be covered by a decent student insurance policy. The decision should be based on four factors:
- The flexibility and scale of the coverage (sum insured
- The claim resolution procedure and track record
- The healthcare network (affiliations with hospitals on or near campus) and
- Non-medical benefits.
While an Indian insurer may be more cost-effective and offer better coverage, the university option may provide a more comprehensive insurance plan with a better hospital network.
Best Child Insurance Plans by Canara HSBC Oriental Bank of Commerce Life Insurance
An overseas student insurance package is a specially developed scheme that protects students from health and travel-related costs while studying abroad. To prevent overlap, a student can never quit paying premiums on an ongoing insurance plan. Experts urge that current insurance plans be kept in place to ensure continued coverage.
This will ensure that the student retains his domestic health insurance coverage upon his return to India. If the insurer agrees to retain the earned benefits and suspends the insurance for the student covered by the overseas policy, it will be perfect.
Among the various vendors providing various options, Canara HSBC Oriental Bank of Commerce Life Insurance is the best. The bank offers a diverse range of insurance products and services customized to different clients' individual needs.
Life, family, online term plans, longevity options, credit life, and employee compensation divisions are among the company's numerous offerings available to individuals and groups. While selling merchandise, the company's primary goal is to meet consumer demands over their life cycle - infant schooling, family protection, long-term investments, and retirement - while providing value for money.
These are some of the services that the bank offers for your child:
1. Invest 4G Plan
It's a Unit Linked Insurance Plan (ULIP) that lets parents invest in a mix of equity and debt funds. With automated fund management, consumers never miss a business opportunity. With Loyalty Additions and Wealth Boosters, it allows for a boost in corpus formation. In addition, the scheme reimburses the mortality charge and provides parents with the Goal Protection Option, which helps them, protect their child's dream.
2. Smart Future Plans
Another Unit Linked Insurance Plan (ULIP) that allows you to invest in various equity and debt funds. To shield the child's dream from your untimely death or injury, you will adjust the life cover number within the policy period. It helps parents automate the management of their pension portfolio, allowing for tax-free partial withdrawals after five years.
3. Jeevan Nivesh Plan
It's an endowment plan with the option of covering you for the rest of your life. It includes fixed incentives and future values, allowing consumers to increase their wealth through annual incentives. In a single approach, parents can help children achieve their goal and ensure their financial safety. Customers can also save tax on their investments and receive a tax-free maturity value.
There is no wonder that a parent's joy is derived from their children's enjoyment and achievements. Parents are always willing to pay a little more for their children's happiness. Their success is largely dependent on financial and moral support from their parents. Child insurance policies will help you take care of your children while you are there and even after you are gone.