Your Insurance Options Abroad

Life in a foreign country can hold many attractions. Some people are lured abroad, perhaps to the developing world, by new job opportunities, especially given the recent signs of recession in the west. Others may be moving to be with family members or loved ones. But many people who become expatriates in this way are unaware of the risks they may be taking if they do not take out an appropriate health insurance policy.

Many people moving abroad rely on their new employer to insure them. Some take out travel insurance as a temporary measure. Some decide to rely on the national health system in the new country, should there be one; others may take out private insurance locally. In many cases, it is a combination of these approaches. There is a simpler, and safer, alternative: international health insurance.

International insurance is priced based on your age and area of cover; typically the options for coverage include worldwide or worldwide excluding the US. Making a claim does not increase your premium, and policies are typically guaranteed renewable for life, meaning that you will not be left in the lurch as you get older or should you develop any medical conditions while covered. These are some significant advantages compared to other types of medical insurance; local insurance policies often have an age limit- something between 65 and 75 - or a coverage limit, beyond which you are no longer covered, and making a claim can have a big impact on your premiums- if it doesn’t lead to you being dropped by your insurer altogether!

What follows is a quick comparison of the usual benefits of global health insurance policies with those of other types of health insurance:

Travel Insurance:

While it might seem safe, and cheaper, to get travel insurance to cover you when you are newly arrived in the country, perhaps while waiting for another type of insurance to come into play, it is unwise to use travel insurance for purposes other than those for which it was intended, i.e. travel. A global lifestyle requires a different type of global insurance.Travel insurance is designed for emergencies, not for routine care or long term medical needs. Over a prolonged period of time it will also tend to be more expensive then international health insurance, for a smaller amount of coverage and range of benefits.

Insurance from your Employer:

The advantage of an international health insurance plan taken out independently of your employer is that you will still be covered if you lose your job or decide to leave it- it is not good to feel trapped in any job, least of all in a foreign country with which you are still unfamiliar, so do not put yourself in a position where you cannot leave your job for fear of losing your cover. You can also take out a family plan. In this way the wellbeing of your loved ones will not be dependent on insurance from your employer.

Some larger companies will offer their employees group coverage with an international health insurance provider. This can be a good option, as with large groups of around 20 or more insurers sometimes offer MHD, or medical history disregarded, meaning that you do not have make a medical declaration and any pre-existing conditions you may have will thus be covered. However, you should be sure to check exactly what coverage your employer is offering; insurance from a local provider is also common- in fact in some countries it is mandatory.

Relying on the National Health Care System:

Do not assume that the national health care system in the country you move to will have the same standard of care as you may be used to in your home country. Many expatriates are drawn to developing countries where the public health care systems are of a much different standard than they are used to, and private health care is very expensive. There are exceptions to the rule, of course, but in any case, don’t assume you will have access to any national health care system as soon as you move to a country. Often there is a waiting period before you can be included in the system, and non-citizens or non-permanent residents may never be covered. Even if you are, this coverage will not follow you if or when you should leave for a different country.

Local Insurance:

Insurance with a local provider may initially appear to be somewhat cheaper than global health insurance, but bear in mind that it will likely be affected by claims you make, unlike international medical insurance, as mentioned above. An international insurer can also offer the peace of mind of being able to make your needs known in your native language, which can be a great comfort in stressful situations such as medical emergencies. Most good international insurance companies will have set up a network of healthcare providers in the country you are in, enabling them to settle bills with hospitals directly and also ensure that your care is appropriate and of good quality. This can be an important advantage in developing or even developed countries where up-front cash payment is a common requirement in hospitals. Another significant benefit of a global insurance policy as opposed to a local one is that such policies frequently include medical evacuation and/or repatriation cover. If the unthinkable should happen, you may well want an insurer that would bring you home to be closer to your family and friends, and in familiar surroundings, for treatment.

Conclusion:

Health insurance is a long term investment, so take the time to find an insurance intermediary you can trust, and a policy which is right for your situation. Make sure that you are fully informed about the benefits and limitations of different types of policy before you choose. International health insurance is not necessarily appropriate for everybody, but for the expatriate or globally mobile it should be seriously considered, as in most cases it will provide the most comprehensive and most appropriate level of coverage; the benefits can extend beyond global mobility to coverage for life – so choose carefully!

Author: Jack Rutherford