Is it essential to take life insurance for my daughter who is pursuing higher education abroad? We have taken a travel insurance for her.
Anusree
Patna, Bihar
Reply by Srinivas Balasubramanian, Chief of Products, ICICI Prudential Life Insurance Company Limited
Studying abroad is a coveted aspiration for many Indian students, necessitating years of relentless effort and commitment. The appeal extends beyond access to superior education to include the chance to embrace a foreign culture and fully engage with it. Furthermore, there is the promise of a prosperous career and enhanced quality of life in a developed nation. Consequently, a significant number of aspiring young Indians aim to pursue their higher education overseas.
Typically, most students travelling overseas to pursue higher studies avail of an education loan. However, life as we know it is unpredictable and in the case of the unfortunate demise of the student, not only does the family have to cope with the irreparable emotional loss, but they are also saddled with the burden of repaying the loan.
Keeping this in mind, it is prudent for the student to opt for life insurance while planning to study abroad. The fact that one can get life insurance for a relatively lower premium at younger ages, is another reason for the student to opt for life insurance.
Based on a recent assessment by the Ministry of External Affairs, approximately 1.33 million Indian students are currently undertaking higher education abroad. The challenges they encounter have escalated due to growing geopolitical conflicts, such as the Russia-Ukraine war forcing numerous Indian students to evacuate from Ukraine.
Additionally, the substantial healthcare expenses in various countries have also posed a significant burden. Despite these obstacles, there is a lack of insurance plans tailored to address the unique requirements of Indian students studying overseas. Consequently, insurance companies are now recognizing this as a promising market opportunity.
Before selecting an insurance provider or life insurance product, it is beneficial to conduct initial research and review customer feedback to aid in the decision-making process. Exploring additional riders or coverages for critical illnesses, terminal illnesses, accidental death, accidental total or permanent disability, among other options offered by insurers, can enhance coverage for unforeseen circumstances beyond death. Please note that such benefits may not always be included in insurance policies from foreign providers.
Moreover, consider factors like the claims settlement ratio, coverage extent, payment terms, and policy conditions before making a final purchase decision.
(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)