There are many reasons student health insurance is cheaper than other types of insurance, including individual health insurance. These reasons include because students are generally younger and healthier than other adult segments of the population, they are more active, they have access to health care on campus, and they are only looking for insurance for a brief amount of time (while in school). Insurance companies are also banking on the statistics that show that most students wait until they are out of school to get married and have children (therefore reducing the possibility that they will need maternity coverage).
But before we get into all that, it is so important to make sure you are insured if you are a student (or that your child is insured if you are the parent of a student). Living without insurance is extremely risky. Thousands of people face bankruptcy every year because they don't have insurance and they have to pay unexpected medical bills.
Also, under the new health care reform act of 2010, by 2014, children will be able to stay on their parents' plans until the age of 26. So really, there will be no excuse to go without insurance!
If you are interested in buying student health insurance, here are some facts to consider:
Most companies will lower their rates for students because students are younger, more active, and generally healthier than the rest of the adult population. Students are also less likely to be chronic or long-time smokers.
You'll also find that student health insurance rates are lower because insurance companies know that students have access to 24-hour health care at their student health care center on campus. Insurance companies also know that students will only need insurance for about four years, so they are more willing to gamble with lower rates, hoping the student is less likely to need major medical attention during this shorter period of time.