Health Insurance for College Students: Important and Surprising Perks

Overview

Health, being one of life’s most valuable assets, must be preserved as best as possible. This includes not only physical and mental well-being but also financial health, such as having health insurance. Indeed, individuals of all ages, from the young to the elderly, require guaranteesWarranty Statement A statement issued by a potential customer regarding the condition of the person or thing insured. of health and life protection, students included. This is particularly crucial considering that the student years are a time of productivity, where individuals frequently strive to reach their potential in their careers.

Having insurance is crucial for students living far from their parents and relatives. In the event of illness requiring hospitalization, parents cannot always arrive immediately, often taking more than an hour. Additionally, hospital fees can be prohibitively expensive. Without insurance, this scenario can become exceedingly challenging.

What Insurance Do Students Need?

Students typically require several types of insurance, including health insurance to cover medical expenses, contents insurance to protect their belongings, and sometimes even travel insurance if they plan to study abroad. It’s important to evaluate individual needs and compare different policiesPolicy The policy is a binding agreement and is agreed upon by the insurance company and policyholder in writing. An agreement made by the policyholder with an insurance company. to find the most suitable coverage. For more detailed information, students can refer to resources like Save the Student or Money Supermarket for guidance on contents insurance and consult specialized articles for health insurance options.

Have Health Insurance

Health insurance is essential for students as a form of protection and assurance. On the other hand, life insurance may not be deemed as crucial for students since it is typically more relevant for individuals with dependents. For instance, it is beneficial for those who are married and have children, providing compensation to their loved ones in the event of their passing.

Is Additional Life Insurance Necessary?

If a student with life insurance passes away during the coverage period, the insurance company will pay out a sum. In the absence of dependents, this insuredInsured A person who is legally listed in the insurance policy to receive benefits from the policy. A person whose life/health is covered in accordance with an insurance agreement or contract. amount will typically be received by the parents.

In such a case, it would seem inappropriate and inefficient, as parents do not anticipate profit, particularly from the tragic event of a child’s passing. Consequently, it is more fitting for students to prioritize obtaining health insurance.

However, consider a different scenario where a student has substantial debt. Debt represents a financial obligation that must be fulfilled, and in this context, it falls under the category of “liabilities.” Take Erwin, a student who is financially independent due to his business income. He operates his business with capital borrowed from a bank. Should Erwin pass away before clearing his debt, the bank would inevitably face financial losses.

Consequently, the bank requested Erwin to purchase life insurance to ensure that his loan would be covered in the event of his death. Should he pass away before settling his debt with the bank, the insurance payout would be utilized to clear the outstanding amount.

The Benefits of Health Insurance for Students

The benefits and utility of health insurance can be differentiated within the following two frameworks.

Reimburse System

Health insurance with a reimbursement system requires students as customers to first pay for medical expenses when sick. If something happens that requires hospitalization, then the patient must pay the entire cost upfront. After that, only submit a loss claimClaim The demands are given by the insurance policyholder to get the right properly so that the insurer pays the conditions according to the existing procedure. to the insurance company by meeting the requirements that have been determined from the insurance policyInsurance policy An agreement between the policyholder and the insurance company to perform the obligations as agreed by both parties..

Cashless System

As implied by its name, cashless health insurance eliminates the need for cash transactions. Therefore, there’s no out-of-pocket expense when visiting the hospital. In the event of an emergency that necessitates immediate hospitalization, medical services can be accessed promptly without concern for the costs involved.

Given that the average student lacks a regular income, cashless health insurance can be an optimal solution. This type of insurance is highly beneficial and practical, particularly for students living far from their parents.

Students without their own income may find health insurance with a reimbursement system challenging, as it requires them to have an emergency fund to cover treatment costs upfront. Subsequently, they must file a claim to get reimbursed by the insurance company.

Even then, the funds may not be sufficient to cover the high costs of medical expenses payable in cash at the hospital. Therefore, it is strongly advised that students utilize health insurance that operates on a cashless system.

The Conclusion

Although students may not have their own income, they are still exposed to various risksRisk Risk is a loss that occurs to the insured individual or object. Various bad possibilities could happen to someone. and unforeseen events daily. Without adequate protection, one should not be surprised by the panic that ensues when illness strikes and financial resources are depleted.

Therefore, it is essential for students to have health insurance. Life insurance, on the other hand, can be considered based on individual circumstances and requirements.

Do you think you have other ideas about Health Insurance for College Students: Important and Surprising Perks? You can comment and share your thoughts below, or discuss more in the InsuranceWhat Forum. Also, read more articles about GLOBAL INSURANCE or other interesting insurance topic articles only at InsuranceWhat.com.