Which Health Insurance Plan Is Suitable for Students in 2025?

What is a Student Health Insurance Plan? Student health insurance helps cover medical expenses during studies, whether in India or abroad. These plans may be domestic, international, or offered as group policies by universities. They usually include hospitalisation, accident cover, and emergency treatment, but exclude cosmetic procedures and self-inflicted injuries. Before buying, students should always check university requirements, compare inclusions and exclusions, and review the claim process. Costs start at ₹10,000–₹15,000 annually for domestic plans and ₹25,000+ for international coverage. The right choice is one that balances compliance with university rules and practical healthcare access.

Starting your student journey is exciting, full of new experiences and independence, but it also comes with responsibilities, including protecting your health. Even a short hospital stay in India can cost ₹30,000–₹1 lakh, and studying abroad can make the same treatment nearly ten times more expensive. Student health insurance plans are designed to cover these unexpected medical costs and, in many countries, are mandatory for university admission.

In this guide, we break down everything you need to know about choosing the right student health insurance plan in 2025. From understanding types of coverage to costs, exclusions, and university requirements, we’ll help you make an informed decision that keeps you safe without breaking the bank.

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Why is Student Health Insurance Important?

Students are often young and healthy, so many feel health insurance isn’t necessary. But medical emergencies can strike at any time. A student health insurance plan ensures that unexpected expenses like accidents or hospitalizations are covered, giving you access to quality healthcare without financial stress. In fact, in countries like the USA, UK, Canada, and Australia, having health insurance is mandatory for international students. In India, it is not required for a student visa, but many universities still recommend it for financial protection.

The good news is that premiums are much cheaper at a younger age, and by starting early, you also complete waiting periods sooner, which means broader coverage in the future. Plus, if you don’t make any claims, many policies reward you with a no-claim bonus that increases your coverage at no extra cost. 

Types of Student Health Insurance Plans in India

Not all student health insurance plans are alike. They can generally be grouped into three main categories: 

1) Domestic student health plans: 

For students studying in India, these are usually standard individual or family-floater policies, sometimes marketed as student plans. Their main benefit is continuity, as coverage can continue even after graduation, unlike university group policies that end with your course.

Who May Need It?

• Students enrolled in Indian schools or colleges who aren’t already protected under their parents’ floater policy.
• Young adults who want a long-term health cover that continues beyond their student years without interruption.

What’s usually covered?

• Hospital stays (IPD)
• Day-care procedures
• Pre- and post-hospitalisation
• Ambulance and home-based care
• AYUSH coverage
• Organ donor expenses

Add-ons:

• OPD coverage
• Tele-consultation options 
• Personal Accident riders
• Consumables coverage
• Relaxed room-rent limits

Waiting Periods in Student Health Insurance Plans

• Initial waiting period: About 30 days for most illnesses. Accidents are usually covered from day one.
• Pre-existing conditions: Generally covered after 2–3 years.
• Specific listed illnesses: May have a waiting period of up to 2 years, depending on the insurer.

Always review waiting periods before buying, as they can greatly affect when your coverage actually begins.

1) Popular Domestic Student Health Insurance Plans in 2025

Before we discuss the list, here’s how we decide what plans to feature. At Ditto, every health plan goes through our six-point evaluation framework. It doesn’t mean these are the only good plans, but that they stand out after being scored across all six pillars. You can learn more about how we evaluate health insurance plans here.

Here’s a snapshot of some notable student health insurance plans available for coverage in  India, along with their key features:

Plan Name	Restoration	Renewal Bonus	Network Hospitals	CSR
HDFC ERGO Optima Secure	100% of base SI once/year (addon: unlimited)	50% pa, up to 100%	13k+	97%
Care Supreme	Up to base SI, unlimited times	50% pa, up to 100% (addon: up to 500%)	11.4k+	93%
Aditya Birla Activ One Max	100% of base SI, unlimited times	100% pa, up to 500%	12k+	96%
Niva Bupa Aspire Titanium+	Unlimited restoration after the first claim	Booster+: Carry forward unused cover up to 10x	10k+	92%

Premium Snapshot (₹15L Sum Insured)

Age	HDFC ERGO Optima Secure	Care Supreme	Aditya Birla Activ One Max	Niva Bupa Aspire Titanium+
Est. Premium for 18 yrs	₹13,743	₹17,208	₹11,447	₹12,142
Est. Premium for 23 yrs	₹14,697	₹17,208	₹11,447	₹12,142
Est. Premium for 26 yrs	₹15,223	₹17,208	₹12,694	₹13,196

2) International Student Health Insurance (For Studies Abroad): 

If you’re studying abroad, an international student health insurance plan is essential. These policies cover medical needs, include student-focused benefits, and most importantly, meet visa and university requirements, making them a must-have.

Who should get it?

• Students heading abroad for a semester or longer, whether it’s undergraduate, postgraduate, exchange programs, or even a PhD.
• Those who want to apply for a waiver from the university’s compulsory group plan (this is quite common in the US and Canada).

Compliance and paperwork: Most universities and embassies set minimum requirements, such as a defined medical sum insured, emergency evacuation, repatriation of remains, mental health coverage, maternity coverage, or even sports coverage. Some also cap the deductible or co-pay amounts. To prove compliance, you may need to submit an insurance certificate in the university’s prescribed format.

What does it cover?

• Hospitalisation and outpatient care overseas, including ER and urgent care visits.
• Emergency medical evacuation and repatriation are usually mandatory.
• Prescription drugs and sometimes physiotherapy after an injury (with limits).

Student-specific benefits you often see:

• Tuition fee reimbursement 
• Sponsor protection and accident cover.
• Compassionate visits
• Coverage for loss of passport, baggage, or third-party liability (limits may apply).

Things to watch out for:

• Geographic zones: Plans covering the US/Canada are much costlier than those excluding them.
• Deductibles and co-pays: Universities may restrict how high these can be. A lower deductible means a higher premium but less out-of-pocket cost later.
• Pre-existing conditions: Often excluded, or only covered for “acute onset” (sudden emergencies). Ongoing management of chronic conditions is usually limited.
• Mental health and maternity: Many plans include these now, but with visit caps or prior-approval rules.
• Sports exclusions: Competitive or club-level sports might be excluded unless you pick a suitable variant.
• Direct billing: Most plans rely on global assistance networks, so you can get cashless treatment abroad. Always carry your assistance card with you.

Don’t rush to buy the cheapest plan. Always confirm if your university accepts it, or you could end up paying twice, once for your own policy and again for the university’s mandatory plan.

Duration & Pricing of International Student Health Insurance

Most international student health insurance plans are designed to match academic timelines, so they’re usually sold for 6 to 24 months, with the option to extend if your course runs longer. The premium you pay depends on several factors: your destination country, length of stay, sum insured, deductible level, age, and any optional add-ons you choose.

Option	Duration	Premiums	Issuer	Scope & Coverage	Notable Features
Indian-issued plans (e.g., Tata AIG StudentGuard, HDFC ERGO Explorer)	Typically 6–24 months (extensions allowed)	Paid in INR (lower cost)	IRDAI-licensed Indian insurers	Covers Indian students abroad; accepted for visa and waiver purposes	Global assistance networks, affordable premiums, and policies issued in India
ISO Student Health Plans (USA)	Usually per semester or annually	Paid in USD	Local US provider	Widely accepted in American universities	Claims processed under the US healthcare framework
International Student Insurance (ISI)	Flexible (semester or annual)	Paid in USD	Broker, underwritten by global insurers (Lloyd’s, Tokio Marine HCC)	Accepted at many US universities, also marketed in Europe & Asia	“Student Secure” tiers (Budget, Select, Elite) with mental health, maternity, and sports coverage
Cigna Global Student Plans	Long-term, customizable	Paid in USD (higher cost)	Multinational insurer	Worldwide coverage (Europe, UK, US, etc.)	Add-ons for dental, vision, mental health, wellness — designed for expats and global students

If affordability and visa compliance are priorities, plans in India are cost-effective. But if your university insists on local or global coverage, platforms like Insurance Services Office (ISO), International Student Insurance (ISI), or Cigna Corporation may be a better fit.

3) Group student health insurance:

 Many educational institutions offer group student health insurance, which is a master policy purchased by the institution. These can be either:

• Mandatory, bundled with tuition fees, or
• Optional, offered on an opt-in basis.

Typically, group policies come in two main forms:

1. Group Mediclaim policy
   • Primarily covers hospitalisation
   • May also include outpatient consultations, accident coverage, and wellness benefits
2. Group Personal Accident (GPA) Policy
   • Focuses mainly on accident protection
   • Hospitalisation or outpatient care coverage is usually limited or offered as an add-on

The key advantages of group student health insurance include:

• Immediate coverage, often without the need for medical tests
• Affordable premiums, since costs are shared across thousands of students
• Cashless treatment at network hospitals
• Access to on-campus clinics
• Growing inclusion of wellness benefits and mental health support

However, there are some important limitations to consider:

• Coverage amounts are generally lower (₹1–3 lakh in India)
• May include room rent caps (e.g., 1% of the sum insured per day) and sub-limits on expensive procedures
• Certain treatments, such as implants, maternity, or extensive outpatient care, may be excluded or capped
• Coverage may be restricted to the university’s location, leaving students unprotected elsewhere
• Plans usually end once the student graduates or withdraws, unless there is an option to convert to an individual policy

Examples of Group Student Health Insurance (India & Abroad)

Institution	Type	Insurer/ Administrator	Coverage	Cost/Notes
IITs / IIMs (India)	Mandatory group health insurance for all enrolled students	SBI General, Oriental Insurance, United India, etc.	Hospitalisation, accidents, basic OPD (varies by institute)	Included in enrollment; coverage terms differ across campuses
University of California System (UC SHIP) – USA	Mandatory student health insurance	Anthem Blue Cross	Comprehensive US coverage: doctor visits, hospitalization, prescriptions, mental health, maternity	Premium billed with tuition (several thousand USD annually). Waiver possible only with equivalent coverage (most Indian plans don’t qualify)
State University of New York (SUNY) – USA	Mandatory for all full-time international students	UnitedHealthcare Student Resources	ACA-compliant: includes hospitalisation, prescriptions, mental health, emergency evacuation, and repatriation	. Bundled with tuition (~USD 1,200–2,000 per year)
Technical University of Munich (TUM) – Germany	Public statutory health insurance (group scheme)	Providers like AOK, TK, and Barmer	Full German statutory cover: hospitalisation, outpatient, maternity, mental health	Subsidised student rate ~€120–130/month; mandatory for students under 30

What Do Student Health Insurance Plans Cover?

Like any insurance policy, student health plans come with defined inclusions and exclusions. Understanding these upfront helps avoid surprises during claims.

Common Inclusions

• Inpatient hospitalisation and surgeries
• Coverage for accidents and injuries
• Emergency medical evacuation (particularly useful for students abroad)
• Mental health support and counselling
• Preventive care, such as vaccinations and annual check-ups
• Doctor consultations, medicines, and other essential treatments

Common Exclusions

• Pre-existing conditions (unless the waiting period is completed)
• Cosmetic or elective procedures
• Dental and vision care, unless specifically included
• Injuries caused by self-harm, substance abuse, or alcohol-related incidents

Breaking Down the Costs The cost of student health insurance varies widely depending on where you study and the type of plan you choose. In India, a plan with a sum insured of ₹10–20 lakh for students under 25 typically costs around ₹10,000–20,000 per year, though the exact premium depends on the city and insurer. If you’re heading abroad, the numbers climb. For example, Indian insurers offer overseas student plans with coverage between USD 100,000 and 500,000, usually priced at ₹25,000–70,000 per year. On the other hand, US-based providers such as ISO or PSI charge anywhere from USD 400–1,500 annually, depending on the deductible and coverage tier, while university-sponsored group plans often cost more, typically USD 1,200–3,000 per year. In Europe, Germany requires international students to join the statutory health insurance system, which costs about €120–130 per month (roughly €1,500 a year). In Australia, Overseas Student Health Cover (OSHC) costs around AUD 500–600 per year for singles. Meanwhile, some countries like the UK and France offer free or heavily subsidized healthcare for students, making them much lighter on the wallet.

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Ditto’s take on How to Pick the Right Student Health Insurance Plan?

Choosing a student health insurance plan can feel overwhelming, but focusing on the right factors makes it easier:

• Check University Requirements:
  • Ensure the plan meets coverage amounts, deductibles, and benefit criteria.
  • Non-compliant plans may delay admission or require buying an extra policy.
• Match Coverage to Your Needs:
  • Include accident protection, outpatient care, and mental health support as needed.
• Understand Exclusions:
  • Pre-existing conditions and specific illnesses may have waiting periods.
  • A smooth claims process is more important than saving a few hundred rupees.
• Consider Location:
  • Confirm your insurer is accepted by your university, especially abroad.
  • Local or university-partnered plans may simplify matters.
  • If planning to return to India or facing high foreign healthcare costs, a domestic plan can offer lower costs, completed waiting periods, and growing coverage via no-claim bonuses.

At Ditto, our advice is simple: don’t chase the cheapest policy; choose the most relevant one.

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