I have a family full of students whose student fees include a health insurance plan. You might think that the school would see to it that students are offered a sensible plan at a reasonable cost. The plan description I got to see didn’t look very sensible to me.
Flipping open the cover to the first two pages, my eyes were drawn to the giant dismemberments table. The funniest entry (if discussing dismemberment can be funny) is the loss of “One or More Entire Toes” for $50. In what possible way can $50 compensate for a lost toe?
The purpose of insurance is to cover large costs of low probability events. Losing a toe has low probability, but $50? The top end of the table is $25,000 for losing any two of six things: your eyes, hands, and feet. Again, $25,000 is very low compensation for such devastating losses.
The rest of the document is a long string of caps of $100, $1000, $2000, etc. on various mishaps. Real insurance would make you pay the first $100 and cover all of the rest. I can understand why an insurance company prefers to cover only small costs with low caps, but I don’t see why this is any good for students.