Know the Differences: Travel Insurance and International Health Insurance
If you’re an expat or traveler, the terms “international health insurance” and “travel insurance” will most likely be familiar to you. While similar at first glance, these types of health insurance plans can be more different than you think.
In this article, we will discuss the differences between travel insurance and international health insurance, the extent of their coverage, and more to help you decide which type of health insurance you need to craft an effective safety net for yourself and your family.
Travel Insurance
Travel insurance protects you from financial risks and trip disruptions. Some notable areas of coverage include flight cancellations, luggage loss, and emergency medical treatment. However, this type of health insurance is designed for short trips.
Benefits and Coverage Areas of Travel Insurance
The most common benefit of travel insurance is that your medical expenses and treatment will be covered during your trip. If you or any accompanying family member gets sick or injured during your trip, such medical expenses and treatment will be covered.
Additionally, travel insurance also covers emergency medical repatriation costs if you get seriously sick or injured, and you need to get sent back to your home country for treatment.
Travel insurance also covers flight delays (along with ships or other modes of transportation) beyond your scheduled departure time and, depending on the plan, reimburse you if you choose to cancel your trip.
If your luggage and belongings (including official travel and identification documents) are lost, stolen, or damaged during your trip, travel insurance can also reimburse item replacement and repair costs.
However, despite the benefits and coverage, travel insurance does have its drawbacks and limitations, which brings us to our next point.
Drawbacks of Travel Insurance
The biggest drawback of travel insurance is that it only covers short-term medical coverage during the duration of your trip at your selected destination. This means travel insurance is merely intended to cover medical expenses during the trip so that you are well enough to go home.
If further treatment is required upon returning home, however, medical coverage ceases and you will then have to seek medical treatment in your home country.
The Cost of Travel Insurance
On average, the cost of travel insurance is around 4-6% of your trip cost, according to Forbes Advisor. That said, the exact cost of your travel insurance policy will depend on various factors such as your age, the extent of coverage, the cost and duration of the trip, and the total number of travelers.
Thus, make sure you discuss your requirements with your insurance broker to get the most accurate information on estimated premiums.
International Health Insurance
Taking a giant leap from travel insurance is international insurance, which is designed for expats living overseas for prolonged periods of time for work, family, or retirement purposes.
Some notable areas of comprehensive coverage under international health insurance include inpatient and outpatient care, maternity care, wellness care, dental care, and more.
What’s Covered Under International Health Insurance
International health insurance covers inpatient and outpatient care, maternity care, wellness, and dental care. International health insurance plans are also customizable, allowing you to craft your own safety net for you and your family.
For instance, your medical expenses for inpatient and outpatient care in the event of illnesses and injuries will all be covered along with maternity and wellness care for your spouse expecting a child, or dental and vision care for yourself, your spouse, and your children.
Drawbacks of International Health Insurance
The biggest drawback of international health insurance, due to its more comprehensive coverage, is its higher premiums. However, when considering all the comprehensive areas of coverage in comparison to travel insurance, it’s understandable that premiums will be more expensive than travel insurance.
One potential limitation with international health insurance is finding a policy with pre-existing condition coverage. However, just because an international health insurance provider can’t cover pre-existing conditions, that doesn’t necessarily mean others will also do the same.
Make sure that you carefully review all terms and conditions along with areas of coverage to understand whether you will be eligible for pre-existing condition coverage. If needed, please contact your broker for further clarification.
The Cost of International Health Insurance
Much like its travel counterpart, the exact cost of international health insurance varies depending on various factors such as your age, your desired areas of coverage, and your location.
Be sure to contact your insurance broker for more details on exact premiums if you’re unsure.
So…. Which is Better?
Whether travel insurance or international health insurance plans are more suitable for you depends on the duration of your stay abroad.
Let’s say you’re going on a short trip abroad for a few days to a week, then a travel insurance policy may be enough for you.
On the other hand, if you travel frequently for work or you’ve decided to move abroad altogether, then it’s a good idea to consider international health insurance due to its vastly superior degree of coverage, all of which you can personalize to include whatever you want.
Conclusion
In conclusion, both travel insurance and international health insurance have their fair share of benefits and drawbacks as both types of health insurance are designed for specific groups of people.
For instance, if you’re looking only to travel overseas for a few days, travel insurance will be a good enough option. But, if you’re living overseas for extended periods of time, upgrading to an international health insurance plan is worth considering.
If you have any questions, please reach out to our team at At i-Brokers. We help individuals, families, and businesses worldwide search, compare and save on health insurance plans that meet their budget and unique healthcare needs.
If you’d like to compare and choose a health insurance plan to craft a safety net for you and your family, please don’t hesitate to get in touch with us.
Frequently Asked Questions
Why is international health insurance so expensive?
The high cost of international health insurance is attributed to its comprehensive coverage. Some areas of coverage include inpatient and outpatient care, dental and wellbeing, and maternity care. The exact cost will vary depending on your age, what areas of medical care you’d like to cover, and your location.
What are some pros and cons of travel insurance?
Travel insurance will cover medical expenses in the event of illnesses or injuries, along with luggage and item damage and loss during the trip, as well as flight delays and cancellations. However, travel insurance will only be valid during your trip, meaning coverage ceases once you return home and, if you’re still unwell, you’ll need to get medical treatment back in your home country.
If I have any pre-existing conditions, will they be covered under my international health insurance plan?
Some companies will exclude pre-existing conditions coverage while some will cover them after a waiting period or at a higher cost on top of the default premiums. Make sure you review the policy’s terms and conditions thoroughly before applying.