By Jacqueline Figas, CLU, EPC

Benefits Advisor with Health Assured Financial Group, Mississauga, Ontario Canada

 When it comes to selecting medical insurance for students, lowest-cost is not always the best. Nor is it always wise to purchase coverage from an insurer in your homeland.

The cost of just one night in the hospital in Ontario, Canada can cost $3,000 for the room alone!  In addition to this, is the cost of doctors' fees and medical supplies. 

So it pays to choose your medical insurance wisely...

As parents, you have many responsibilities that call on your time when preparing your son or daughter to study abroad.  Searching for International Student Medical Insurance may be one of the most important tasks you do in preparing your child to study abroad. Yet too often it is seen as the least important task and a hasty decision is made – one that could ultimately cost parents thousands of dollars in medical expenses.

The following is a checklist for parents and students to help you evaluate international student medical insurance plans before you make your decision to buy.

1.       Does the medical insurance cover a pre-existing condition? Most medical insurance plans are designed to cover new conditions that occur after the effective date.  If your child is on long-term medication before purchasing the medical insurance, it may not be covered.

2.       Does the medical insurance cover ongoing drugs which may be required for a medical condition acquired after purchasing the medical insurance? Some student health plans cover only the initial prescription.

3.       Does the medical insurance cover follow up visits to the physician? Some student health plans only cover the initial visit or limit the follow-up visits for the same condition to 2 or 3 times. The industry average for repeat visits is 4 – 7 for most medical situations that arise.

4.       Is the insurance company located in the city, province, country where the student will be living? When a medical emergency occurs, you want the school and/or guardian of your child to have easy access to support through your medical insurance. Dealing with a company that is located in another country makes it more difficult for the school and the guardian. When you deal with a local insurance broker who is based in the same city as your student, they can work on your behalf to assist in co-ordinating an emergency with the school, the parent, and the medical facilities keeping everyone in the loop.

5.       Is there a waiting period for coverage to take effect? Some medical plans do not cover illnesses that occur within a certain period such as the first 48 hours upon arrival. Or some medical plans may require you to purchase the insurance before arrival.

6.       Does the medical plan exclude sports participation? Check the policy to be sure there are no sports exclusions. Many schools have team sports activities and you want to be sure your child is covered.

7.       Does the medical plan cover the student on field trips?  Be sure the medical plan covers field trips to another province or country.

8.       Does the medical plan cover temporary visits back home to the country of origin? Some plans will provide coverage for a stipulated period such as 30 days, while other plans do not. The problem with this, is that if your child develops a condition or has medical treatment while visiting home, this will be considered a pre-existing condition upon returning to school. You can avoid this if the medical plan covers temporary visits back to the country of origin.

9.       Does the medical plan cover the student for the school term only or full 12 months? If your child will be spending the summer abroad, be sure the medical plan continues to cover them when they are not attending classes.

10.   Does the medical plan offer any refund for early cancellation? If there is a need for the student to return home, or if you have purchased a 12-month plan and the student will be graduating mid-year, be sure you can get a refund for the remaining period. Most medical plans will require a nominal administration charge such as $25. Also, most medical plans will only refund the unused portion provided no claims have been made against the policy.

11.   Evaluate any savings associated with low-cost medical insurance by comparing it to the cost of medical expenses in the country where the student will be living. For example, Plan A may cost $350 while Plan B costs $650 – a difference of $300. But Plan A has more restrictive coverage (such as Items 1 – 10 above).  The cost of a hospital room for just one night in Ontario Canada is roughly $3,000. Also, you have paid thousands of dollars for tuition .. so you should protect that investment.   So Plan A does not save you money, it actually costs you money.

Jacqueline Figas is a Benefits Advisor with Health Assured Financial Group, a company located in Mississauga, Ontario Canada, and specializing in insurance benefits for covering healthcare and medical expenses.  She can be reached at 905-278-5636 or by email through info@healthassured.ca

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Jacqueline Figas, CLU, EPC