Health Insurance Not Just For Adults; It Is Also Important For Students

Bangalore University has made health and life insurance mandatory for all its students starting this academic year, aiming to provide financial protection during medical emergencies or unforeseen incidents, according to media reports. The decision was taken after the death of a student on campus by suicide. Also, a couple of years ago, a student had met with a road accident on campus, and the parents were unable to pay the medical bills. These incidents have brought to light the fact that the life and health of students on the campus are also at risk, and insurance is important.

“Our health and life risks have grown increasingly uncertain and expensive. When medical emergencies or tragedies strike students or young adults, the costs frequently hit families hard. At this stage of one’s life, insurance provides a safety net: helps avoid serious debt and allows students to prioritize their studies over worrying about medical expenses or lost income,” says Kunal Varma, founder and CEO, Freo.

While students are less likely to require insurance, it still provides a safety net. Since medical expenses are increasing, even a short hospital stay or a mini-surgery can cost a lot of money. If students have limited means of income or limited family support, this can cause a significant financial burden. So, having health coverage not only reduces out-of-pocket costs, it also enables access to regular checkups and preventive healthcare. This proactive approach helps students to stay physically and mentally fit.

Good health insurance also helps students focus on academics and personal development, rather than worrying about medical bills. It also provides peace of mind to families because they know that their child is protected. It also means that students have early intervention in case of any illness, and that prevents complications.

Typically, student health policies provide hospital confinement for accidents, illness, and surgery as well as OPD benefits (consultations, limited lab testing, prescriptions, x-rays, etc.). 

“Life insurance is typically available and can be term insurance with a small sum assured, providing immediate financial needs of families in the case of an unfortunate event. While life insurance is usually a small lump sum payment, it can provide a sense of financial stability at times when it is needed desperately,” says Varma. However, if the students do not have an income and have no dependents, life insurance is not a mandatory requirement.

Rather than leaving students and families exposed to the possibility of catastrophic or tragic costs of medical emergencies, insurance offers a sensible layer of protection to all students and families as a minimum standard.