The Key Difference Between International Travel Insurance and International Health Insurance

As a seasoned traveler, one of the more common questions I get is, what sort of travel insurance do you use? For travelers who go on the road for extended periods or move to a new country, standard travel insurance becomes less relevant as their home health care plans often lapse. It’s herein that the concept of expat health insurance comes into play. Let's delve deep into the differences between international travel insurance and international health insurance, providing you with insights to make an informed decision for your next international journey.

Defining International Health Insurance

International health insurance, also referred to as expat health insurance or worldwide travel insurance, is a full-service health and medical plan designed for those without a home country or where home-based medical care is not available.

It offers coverage for a wide range of medical services, including medical emergencies, routine doctor’s visits, prescription medications, dental maintenance, and even visits to healthcare practitioners like massage therapists and acupuncturists. This type of insurance is particularly crucial for full-time travelers, expats, and those living abroad, ensuring that medical expenses are covered, even in remote locations.

Understanding International Travel Insurance

Travel insurance is specifically designed to cover the risks associated with travel, typically providing financial protection in case of trip cancellations, lost luggage, medical emergencies, and other travel disruptions. Unlike health insurance, travel insurance does not cover daily medical expenses, chronic conditions, or long-term health issues.

Key Differences

Scope of Coverage: The primary difference between the two lies in their scope of coverage. International travel insurance is focused on covering travel-specific risks, whereas international health insurance offers comprehensive medical coverage for travel and everyday life.

Exclusions: Travel insurance typically excludes coverage for pre-existing conditions, laparoscopic surgeries, and certain medical conditions. On the other hand, international health insurance often covers these conditions, assuming they are not explicitly excluded.

Benefits: International travel insurance provides essential benefits such as trip cancellation, baggage loss, and emergency medical evacuation. Health insurance, on the other hand, offers emergency medical coverage, regular doctor visits, and prescription medications.

Application Process: Both types of insurance require a detailed application process. However, expat health insurance may require you to disclose existing medical conditions more thoroughly to ensure comprehensive coverage. In contrast, travel insurance focuses more on your travel itinerary and activities.

How to Choose the Right Insurance for You

Do Your Research: Start by reading the policies carefully. Understand what is covered and what is excluded. The fine print can be lengthy, but it is crucial to understand your coverage fully.

Budget Considerations: The higher the deductible, the lower the premiums, and vice versa. Consider how much you are willing to pay out-of-pocket in case of a medical emergency and structure your policy accordingly.

Exclusions for the USA: If you plan to frequently travel to the USA, consider a policy that excludes coverage in the USA and further cost it separately for U.S. visits, saving a significant amount.

My Personal Experience

Over the years, I have had various international health insurance policies. My previous experiences with IMG Global Medical insurance were quite successful, as I structured it to have low premiums and a high deductible. However, I discovered Safety Wing, which offers both long-term travel insurance and remote health plans. This policy offered a great balance, providing coverage only in the event of a major medical emergency while keeping my costs manageable. In cases where travel medical emergencies are the only concern, Safety Wing might be a perfect fit for your needs.

For those unsure, consider checking the policy’s direct pay clauses for hospital stays, ensuring you are not left with unexpected expenses.

Conclusion

Selecting the right international travel or health insurance is a critical decision that can impact your safety and financial peace of mind while traveling or living abroad. Understanding the differences and your unique needs will help you make an informed choice. Remember to read the fine print, budget accordingly, and choose a policy that suits your lifestyle.

Do you have any more questions about expat health insurance or international travel insurance?