Heading abroad for higher education is exciting, but navigating health insurance can be tricky. International students often make costly mistakes that can leave them vulnerable in a new country.
From choosing inadequate plans to ignoring the regulations of the country, these errors can lead to financial stress or denied claims.
Rakesh Goyal, Director of Probus, offering products online/offline for Indian customers across categories in General & Life Insurance, highlights five common travel insurance pitfalls to avoid.
By understanding key considerations like comprehensive coverage, country-specific rules, and the importance of transparency regarding pre-existing conditions, students can secure the right plan, ensuring peace of mind and protection during their academic journey.
1) Picking the cheapest plan without reading the fine print
Students are often on a tight budget, and it’s natural to want the cheapest policy. But when it comes to insurance, cheap doesn’t always mean smart. Many low-cost plans omit important benefits like outpatient care, dental treatment, or mental health support.
They might also have high deductibles, meaning you’ll end up paying a lot out of your pocket before the insurer steps in. Look for a plan that balances affordability with solid coverage. One should always look for plans that cover hospital stays, lab tests, doctor visits, and even emergency medical evacuation or loss of passport. Think beyond just illness — look at real-life situations you might face.
2) Ignoring country-specific insurance rules
Every country has its own rules when it comes to student insurance. For example, Australia requires all international students to buy Overseas Student Health Cover (OSHC). In some parts of Canada, you need proof of private insurance before your visa gets approved.
Before buying any policy, check the insurance requirements of the host country and university. If someone is going through a study abroad consultant, ask them directly. Also, Indian insurers now offer location-specific student plans that are compliant with local laws — so make sure your plan checks all the right boxes.
3) Blindly accepting the university's insurance plan
Most international universities automatically enroll students in their own health insurance plans. At first glance, it seems convenient, as there is no extra paperwork and no separate premium to worry about. But here’s the catch: university-sponsored plans are often more expensive and not always better.
In many cases, Indian students end up paying higher premiums compared to a private student insurance plan from India that offers the same or even better coverage.
Before you say yes to the university’s plan, check if they allow something called a “waiver”. If they do, you can choose your own insurance — just make sure it meets their requirements. Several Indian insurers offer special student travel plans that are designed specifically for Indian students going abroad.
4) Hiding pre-existing health conditions
Here’s something many students do, but shouldn’t.
They skip mentioning health conditions in the student travel insurance, such as asthma, anxiety, thyroid issues, or even past surgeries, thinking it will lower the premium. The reality? If something happens and your insurer finds out you didn’t disclose an existing condition, your claim could be completely denied.
So, always be honest about your medical history. Many insurance plans now cover pre-existing conditions after a short waiting period or offer limited coverage right from the start. Yes, the premium might be slightly higher, but it’s worth it if it means peace of mind and claim approval when you really need it.
5) Thinking that health insurance is just about hospitals
Health insurance today covers a lot more than just hospital bills. And when you are studying in a foreign country, those extras can make a huge difference.
For instance, some plans cover the cost of a family member flying in if the student is hospitalised for more than a week. Others may reimburse you if the studies are interrupted due to illness or if you need to drop out of your semester for medical reasons. There's even personal liability cover — imagine accidentally damaging your landlord’s property or being involved in a minor legal issue.
Rakesh Goyal is the Director of Probus. Views expressed are entirely personal.
