How to choose the best overseas study insurance? Four key considerations when comparing overseas study insurance policies. How does overseas study insurance differ from travel insurance?

Overseas study insurance is a must-have for any student who is preparing to attend university abroad. Living in another country can present unforeseen challenges, including differences in healthcare systems, accidents or interruptions to studies. But with so many options available, which overseas study insurance is best suited to your needs? Choosing a suitable policy ensures you can obtain assistance with medical care, emergencies and unforeseen situations. MSIG’s Overseas Study Insurance offers comprehensive protection and an international support network, giving you peace of mind as you plan your studies abroad, as well as the confidence to tackle new challenges.

Many people might not have a clear idea of what overseas study insurance includes. Overseas study insurance mainly provides coverage for three major risk categories: medical care, tuition fees and personal belongings.

1. Overseas medical coverage: includes amateur dangerous sports and activities
   Overseas study insurance is designed specifically for students who study abroad. Medical coverage is the most important component, because medical expenses in most study destinations are significantly higher than in Hong Kong. This type of insurance covers the cost of treatment for accidental injury or illness, including hospitalisation and outpatient treatment abroad, as well as follow-up consultations in Hong Kong during vacation periods.

   For example, with MSIG, medical expenses are covered up to HK$2,000,000, and follow-up consultation fees upon returning to Hong Kong are covered up to HK$250,000 (including fees for Chinese medicine practitioners).

2. Tuition fee coverage: safeguarding your studies from unexpected disruptions
   Another key component of overseas study insurance is tuition fee coverage. If the insured student’s parent or guardian becomes permanently disabled or passes away due to an accident, the insurer will provide a lump-sum payment to cover tuition fees. In addition, if the student needs to cancel their studies before departure due to a covered incident, or if their studies are interrupted due to injury, illness or death of the student or a family member, the insurance will reimburse prepaid but unused tuition fees or the cost of retaking missed courses.

   MSIG offers an “education fund” benefit of up to HK$300,000 and up to HK$200,000 for “study interruption”.

3. Personal belongings coverage: from laptops to household possessions
   Laptops and smartphones are essential items for studying overseas, and many students also choose to bring other valuable items. Overseas study insurance provides coverage for personal belongings and compensates for loss or damage to luggage and personal items during the period of study abroad. Some insurers also cover household items stored in the student’s overseas residence, ensuring protection against loss or damage caused by natural disasters such as floods or earthquakes, as well as reimbursement of temporary housing costs if the student needs to relocate while repairs are conducted.

   MSIG provides coverage of up to HK$20,000 for personal luggage and belongings (including smartphones and laptops), and up to HK$12,000 for household contents in the student’s overseas residence.
    

Unlike single-trip travel insurance, overseas study insurance provides continuous, year-round protection. It also covers leisure and cultural exchange activities during the period of study overseas, ensuring the policyholder is protected for lost travel documents, trip delays, baggage delays and other unforeseen incidents. In addition, overseas study insurance offers much more comprehensive coverage than ordinary travel insurance.

When it comes to overseas study insurance, knowing what’s covered is just the start. To find the policy that best suits your needs, it’s important to compare a range of different plans and evaluate each option carefully, taking into account these four key considerations:

1. Medical coverage: In addition to comparing the total coverage amount, it’s also important to check whether the policy covers follow-up medical consultations in Hong Kong, and whether this coverage extends to treatments such as traditional Chinese medicine.
2. Education-related coverage: A comprehensive plan should not only cover tuition fees, but also provide an “education fund” in the event of a parent’s accidental death, as well as a “school suspension allowance” for interruptions to studies caused by natural disasters or infectious diseases.
3. Emergency support services: While all insurers have a hotline, what really matters is whether they can provide practical worldwide support in the event of an emergency, such as the ability to arrange medical evacuations, hospital deposits or compassionate visits.
4. Additional coverage: Check whether the policy includes coverage for amateur dangerous sports, leisure travel during study periods and personal belongings stored in overseas accommodation.

To understand how overseas study insurance works in practice, let’s take a look at a real-life example. Alice, an 18-year-old student studying in the United States, twists her ankle while learning to ski during the Christmas holidays. She is subsequently diagnosed with a fracture, which requires six days of hospital treatment, as well as five follow-up consultations.

In this situation, a comprehensive overseas study insurance policy could offer the following benefits to ease the unexpected financial burden:

•    Overseas medical expenses: Reimbursement of hospitalisation and surgery costs resulting from the accident (HK$50,000).
•    Outpatient treatment expenses: Coverage for five follow-up consultations (HK$2,000).
•    Hospitalisation cash allowance: A fixed daily cash allowance to cover miscellaneous expenses during hospitalisation (HK$3,000 in total, HK$500 per day for 6 days).

Generally, applications for overseas study insurance are accepted up to 90 days before departure. This gives parents ample time to review the policy terms and conditions carefully, such as age limits for the insured student and parents, as well as the student’s point of departure and passport requirements. Parents should also research the cost of living in the study destination to determine a suitable policy limit and scope of coverage.

Before purchasing a policy, it’s also important to note the following two points:

• Declare any pre-existing conditions: Like most medical-related insurance plans, overseas study insurance does not typically cover pre-existing conditions. Therefore, it’s important to declare the student’s health status truthfully when applying for a policy to avoid potential disputes if you need to make a claim.
• Understand the university’s insurance requirements: Many overseas universities – especially those in the United States and Australia – require students to purchase a designated health insurance policy. Make sure you understand what’s covered by these mandatory policies and consider purchasing a personal overseas study insurance policy to complement the university’s insurance.

1. How does a personal overseas study insurance policy differ from the university’s mandatory health insurance?
   Most overseas universities require students to purchase a designated health insurance plan, which primarily covers the cost of local medical treatment. However, mandatory plans do not necessarily include protection for personal liability, interruption of studies or personal belongings. Purchasing your own comprehensive overseas study insurance provides broader coverage that is better tailored to your individual needs.

    

2. Does study abroad insurance cover short trips during my studies?
   Yes. For example, MSIG’s overseas study insurance includes coverage for leisure trips of up to 90 days during your studies, ensuring you’re protected against travel delays and loss of personal belongings.

    

3. When should I start looking for overseas study insurance?
   It’s a good idea to take out overseas study insurance as soon as you have confirmed your study plans and paid your tuition fees or accommodation deposit.
   Many people mistakenly believe that insurance should be purchased right before departure. However, comprehensive overseas study insurance also includes study cancellation coverage, which allows you to claim back non-refundable expenses, including tuition fees, flights and accommodation deposits if you have to cancel your study plans before departure due to an insured reason, such as a serious illness of a family member. By preparing early, you can ensure that your coverage starts before departure and continues throughout your studies.

The product information provided above is for reference only. For details on coverage and policy terms, please refer to your insurance policy.