Study Abroad Travel Insurance: What Student Health Plans Don’t Cover (and Why It Matters)

Studying abroad means learning new things while walking down a lane filled with joyous new memories. However, what happens if the trip gets disrupted by a natural disaster or you get hospitalized in a foreign country? Student health plans rarely cover international expenses. You may need travel insurance for proper financial protection.

Let’s go over the pros and cons of student health plans and travel insurance, and what insurance you need for studying abroad.

The Study-Abroad Boom and Its Risks

Exchange, internship, and research programs open up exciting opportunities around the world to students. It’s important to know the common risks for studying abroad so you can be prepared.

Medical emergencies

Schools often require you to have some sort of health insurance. Student health plans offer robust medical coverage and services locally, but they typically exclude international expenses. If you fall ill or get injured abroad, student health plans may offer no coverage.

Lost baggage or documents

Studying abroad is different from regular travel–you’ll likely want to bring along both useful and sentimental valuables. Laptops, textbooks, summer and/or winter clothes… but what if you lose them during your trip?

Baggage insurance can cover lost or stolen possessions, with the coverage amount depending on your chosen policy. If you are studying abroad with a lot of items, it’s a good idea to consider baggage insurance. It can help you replace stolen textbooks and electronics quickly so you don’t need to delay your education abroad.

Political unrest or natural disasters

Political unrest can brew, making it too risky to study abroad. Some travel insurance policies will cover trip cancellations due to civil unrest and political tensions. Student health plans will not cover trip cancellation as this is more of a travel insurance concern.

Natural disasters can also delay and disrupt your study abroad plans. Travel insurance will cover unexpected natural disasters. That is to say, if a hurricane has been named and predicted already by the time you purchase your insurance, it will not be covered by insurance. Securing a travel insurance policy earlier rather than later can ensure better trip protection.

Travel delays and program cancellations

If your trip gets delayed due to flight or program cancellations, travel insurance can help cover expenses such as:

• Lodgings (e.g. hotel fees while you wait for the next flight)
• Meals
• Transportation
• Toiletries
• Medications
• Other reasonable expenses

Mental health concerns

Whether psychological strain is covered can depend greatly on your school and insurance details. Review policies and plans carefully to see whether mental health concerns are covered, such as the cost of hospitalizations or trip interruptions due to stress.

What Student Health Plans Typically Cover

Domestic Focus

Student health plans are usually limited to home country healthcare networks. Any medical expenses that are out-of-network would only be minimally covered, if covered at all.

Basic Medical Care Only

Student health plans aren’t meant to be the best insurance plans for medical care. They usually only cover basic doctor visits, medications, and minor outpatient needs. If there’s a serious surgery or hospitalization, the costs could quickly surpass the plan’s coverage limit.

No Travel Benefits

It’s not called a student travel plan, after all. Student health plans typically lack trip interruption, cancellation, evacuation, or baggage insurance. If you lose an item or your trip gets interrupted, you’ll be financially on your own.

You will likely need study abroad travel insurance if you want travel benefits.

Exclusions

Adventure sports: High risk activities are not covered by standard travel insurance. You will need an extreme sports add-on to receive coverage for activities like skydiving, jetskiing, soccer, hiking, and more. If you want potential injuries to get covered during active sports while overseas, adventure sports insurance is important.

Pre-existing conditions: If you have any pre-existing medical conditions like diabetes or asthma, they can interfere with a medical claim. Insurance companies and health plans may look at your recent healthcare visits to see what conditions you have prior to the study abroad program. You will need a pre-existing condition waiver for better coverage.

Out-of-network hospitalization abroad: Even if hospitalization abroad is covered by your student health plan, it would have to be in-network. These restrictions on your healthcare choices while studying abroad could make for a stressful and expensive experience.

What Travel Insurance Adds to the Equation

Emergency Medical Coverage Abroad

Medical insurance for studying abroad is essential. Emergency medical expenses at your study abroad location could be financially devastating. It is crucial to have the right health insurance, but student health plans rarely offer comprehensive health insurance abroad.

Medical Evacuation and Repatriation

Travel insurance can add medevac insurance, which covers emergency services such as:

• Air ambulances
• Emergency ground transport
• Life support costs

Repatriation costs are another thing to consider. While it is unlikely this coverage will come into use, repatriation insurance covers the transport of remains to the home country (which can be surprisingly expensive).

Trip Interruption or Cancellation Protection

Trip cancellation insurance will reimburse you for prepaid, nonrefundable costs for your trip if it gets cancelled for an eligible reason.

Trip interruption insurance is a different type of coverage. It provides financial assistance if parts of your trip get delayed, such as if weather results in a missed layover.

Lost Passport, Luggage, or Electronics Coverage

Common carriers like airlines should reimburse you if they lose or damage your baggage during transport. However, international flights will only cover a maximum of around $1,700 per passenger. It can also be a pain to file a claim for it if you haven’t disclosed what items you packed.

Luggage insurance is a great idea if you’re heading abroad with pricy items. Most students will bring their tablets, phones, laptops, textbooks, instruments, and other important objects for their study abroad. These often cost more than the airline compensation of $1,700. Plus, what happens if you lose your passport and need it replaced?

Travel baggage insurance can cover:

• Actual cash value of belongings up to the maximum limit
• Standard limit of $3000 per traveler (can be increased)
• Stolen, damaged, or lost belongings

24/7 Global Assistance Hotlines

Many top-tier insurance companies will offer global hotlines that you can call in case of an urgent situation. While the country’s emergency hotlines should be contacted first, the global assistance hotline can offer translation services, insurance claim answers, and other concierge services.

Features vary. The best global assistance hotlines for students studying abroad include:

• Translations
• Finding suitable legal counsel
• Fast insurance Q&A
• Hotlines are available wherever, whenever

Mental Health Services and Crisis Counseling Access

While studying abroad is an adventure filled with academic and life-changing opportunities, it can also be terribly stressful. Being far from home, away from friends–even switching to a new diet or weather environment–can make life a struggle and exacerbate existing conditions.

Student health plans may place a limit on individual counseling coverage. Depending on your program (such as undergrad or grad), there may also be different coverage scopes. Many universities offer free counseling for at least a few visits.

Some student health plans do cover mental health services even when you’re studying abroad. Check your plan details to know for certain. If there is no coverage, you may benefit from obtaining extra travel insurance.

Anxious about your upcoming study abroad and the ramifications of cancelling it last minute? A CFAR insurance policy lets you Cancel For Any Reason (so long as you do it at least 24 hours before departure). It will reimburse you for various prepaid, nonrefundable costs, such as event fees and flights. It may also cover study abroad fees, tuition, and housing. Just knowing that the financial consequences are minimized can greatly improve a student’s mental state.

Coverage for Non-Academic Travel During the Term

Travel insurance can also cover non-academic travel during the term. Studying abroad opens up a whole new region for you to experience and sightsee. If you plan on going to other nearby countries or regions, travel insurance can provide better coverage than your study abroad plan. Travel insurance can cover non-academic travel and medical expenses that arise.

Real-World Scenarios That Require Travel Insurance

A student hospitalized during a weekend trip

Let’s say Kevin is in the Netherlands for a study abroad program in Biology. He’s excited to travel across Europe for the long weekend, but his short vacation goes awry. He breaks a leg and ends up hospitalized with a bill of $40,000. He needs surgery and time to recover.

His travel medical insurance has a deductible of $1,000 and a maximum coverage limit of $100,000. Insurance covers the other $39,000. This saves him a huge headache and allows him to continue affording tuition.

Evacuation due to political unrest

Catherine is excited to go to Chile for a semester of study abroad. A few months after purchasing travel insurance and paying for lodgings and flights, she is told that she has to evacuate the area due to political tensions. Catherine’s travel insurance pays for the mandatory evacuation costs.

Flight cancellations due to weather

Alejandro’s flight gets cancelled due to abrupt weather shifts, delaying his entire trip. The thunderstorm makes it impossible to leave until the week after, leading to missed program start dates. Travel insurance helps cover lodgings, transportation, and other fees that he has to pay due to the travel delay.

How to Choose the Right Policy

Add-ons and Upgrades

Every student faces unique risks based on their lifestyle and study abroad program details. If you enjoy sports and tourism, you may want more comprehensive travel insurance to ensure your bases are covered. If you purely want to cover potential medical expenses, a travel health insurance policy with a medevac add-on might be the only type of policy you need.

Tell an insurance agent your needs to tailor a plan just for you. Travel insurance is a lot more customizable than you might think.

Key Questions Students and Parents Should Ask:

• Does the plan cover all program destinations?
• What is the claims process like from abroad?
• Are sports or outdoor excursions included?
• What mental health services are accessible/covered?
• Is there a travel assistance hotline?

Tips for Comparing Plans:

Don’t settle for the cheapest or first policy that shows up. Look at:

• Coverage limits
• Exclusions
• Ease of claims
• Optional add-ons and gaps in coverage

Working with Schools and Providers

University-Recommended Insurers vs. Independent Options

Your school counselor or study abroad program leaders can tell you what options and plans exist. If your university is partnered with an insurance company, they probably offer the most affordable coverage. However, it’s still a good idea to think about whether you need any independent add-ons that the school’s partnered insurer doesn’t offer.

International Program Offices as a Resource

Talk with your international program office to explore their advice and plans. If needed, you may also be able to receive financial assistance for the study abroad program. Many universities offer aid for international study if you qualify.

Bundled Plans from Exchange Program Providers

Planning to join an exchange program? You may be able to purchase affordable plans that align with the needs of a typical exchange student for that program. Bundles come with discounts that could save you a lot of money.

Future Trends in Student Travel Insurance

Education is evolving and shifting to match technological trends. You can now obtain customizable on-demand insurance coverage using phone apps. Insurance can integrate with student ID cards for convenience, and global youth coverage often comes with telemedicine.

Geo-fencing uses GPS and other location-based services to provide emergency alerts and location-aware assistance to students traveling abroad. These can be invaluable in preventing incidents while you’re doing a study abroad.

Conclusion

Student health plans leave a lot of gaps in protection for students who travel abroad. It’s wise to obtain the right insurance and turn potential crises into mere inconveniences.

Students and parents should review both student health and travel insurance options well before departure. Supplement your coverage where needed with travel insurance add-ons. We’ve curated a list of the best travel insurance companies to get you started today.