Why Expats Must Avoid Travel Medical Insurance

Best for Expat Insurance

Best For Travel Insurance

By the end of this article, you’ll know the better options to keep yourself covered abroad and see why choosing the right insurance can save you and your family from trouble.

Why Expats Need Health Insurance Abroad

First off, this is for expats, retirees, or digital nomads. You might not need this if you work abroad and your job handles your insurance. For digital nomads or expat retirees who spend significant time outside their home country, know that your regular insurance likely won’t protect you overseas.

Picture this: You’re in a bustling market in Bangkok, surrounded by Thailand’s vibrant colors and aromatic spices. A bit of rain keeps you cool from the tropical heat, your belly is full of Pad Thai, and life couldn’t be more exciting.

Out of a blind alley, a motorbike driver with his mind elsewhere doesn’t see you cross the street.

WHAM!

Accidents happen, and no amount of healthy living will prevent a motorbike crash.

I’ve met too many young expats who insist, “I exercise. I only eat organic food. I don’t get sick. I don’t need insurance.”

That’s a bad gamble. Check out GoFundMe, and you’ll see plenty of people who learned the hard way that you need adequate health insurance abroad.

Travel Medical Insurance Overview

Today, we’ll talk about two types of insurance: travel medical and international health insurance. The names can get confusing; travel medical insurance is sometimes called travel health. Sometimes travel health is just referred to as trip insurance.

Forget the labels and focus on the coverage, the geography, the duration, and, of course, the cost.

Let’s break it down.

What is Travel Medical Insurance?

Travel medical insurance covers you if you get sick or injured while abroad. It covers unforeseen medical emergencies during your trip. It also provides coverages against unanticipated financial losses such as trip disruptions or damage/loss of personal items.

Types of Travel Medical Plans

Different plans and companies have different coverage levels and policies. Typically, insurance companies offer one of two different types of travel insurance:

• Stand-alone medical insurance plans—These plans cover unexpected medical while traveling. However, a medical plan excludes travel insurance benefits like trip cancellation or baggage coverage. Examples of stand-alone travel medical plans are IMG Patriot Lite and Cigna Global. You can get quotes for this type of insurance here.
• Comprehensive travel insurance policy—In addition to emergency medical benefits, a comprehensive travel insurance plan can bundle coverage for trip cancellation, trip delay, emergency medical evacuation, baggage loss, and more. The ideal example of this type of insurance is SafetyWing, though you can find other companies offering comprehensive travel insurance here.

Safety Wing

FINANCIAL RATING:

CUSTOMER ReVIEWS

• Travel medical and trip insurance that you can purchase without long-term commitments or annual contracts.
• You can sign up and start your coverage abroad, even after leaving your home country.
• Very restrictive limitations and exclusions for pre-existing conditions and chronic illness.

Average Cost 

Maximum Limits

Travel or International Medical

TRAVEL ONLY

Ideal For- Younger digital nomads with no pre-existing conditions needing travel health insurance.

• Stand-alone medical insurance plans—These plans cover unexpected medical while traveling. However, a medical plan excludes travel insurance benefits like trip cancellation or baggage coverage. Examples of stand-alone travel medical plans are IMG Patriot Lite and Cigna Global. You can get quotes for this type of insurance here.
• Comprehensive travel insurance policy—In addition to emergency medical benefits, a comprehensive travel insurance plan can bundle coverage for trip cancellation, trip delay, emergency medical evacuation, baggage loss, and more. The ideal example of this type of insurance is SafetyWing, though you can find other companies offering comprehensive travel insurance here.

What Does Travel Medical Cover

These policies focus on unexpected illnesses to sudden injuries. They usually won’t cover chronic or pre-existing conditions. Routine exams? Forget about it.

Vaccines? Nope.

Preventative health screens? Neither.

The paradox is that travel medical plans will cover you if you catch yellow fever but will not pay for a vaccine to prevent you from getting yellow fever in the first place.

Insurance logic is not always logical

via GIPHY

Travel Health- Duration of Coverage

Coverage duration is a crucial reason why I don’t recommend travel insurance for expats. It’s all in the name. Travel or Trip insurance is meant for short-term trips. Sure, some companies cover you for 364 days and allow you to extend, but each extension acts as a new policy. But here’s the catch:

Let’s say, worst case scenario, you’re diagnosed with something like a chronic heart condition, or you have major surgery because of a terrible surfing accident while in Bali. And it’s something that may take months to recover from. Well, most travel medical policies cover your initial treatment, but the caveat is that you have to stay on the same insurance policy. If you hit the maximum policy length, like that 364-day limit I mentioned earlier, or if you go home because you wanna recover, your policy and, therefore, your coverage for that treatment stops. And to kick you when you’re down, when you renew your policy, all those old conditions or injuries are now deemed pre-existing and will not be covered under your new policy.

How Much Does Travel Medical Plan Cost

Monthly prices differ. You can adjust the cost by changing deductibles, coverage amounts, and included countries. Age makes a big difference, too. For example, as a 50-year-old male, I pay $80 monthly for a plan that covers up to $1,000,000 with a $2,500 deductible.

Real World Quote From Safety Wing For Travel Medical Coverage

Let’s use SafetyWing as an example. By clicking on their travel medical page, you can see that policies start as low as $56 for four weeks. For someone my age (I turned 51 recently), it’s around $145 for four weeks, totaling nearly $1,900 yearly.

While $1900 a month is more than I currently pay for my travel health policy, SafetyWing’s plan has no deductible. No deductible means their insurance is gonna kick in after the first dollar is spent on an eligible claim.

My current insurance is cheaper but has a $2,500 deductible. This deductible means my current provider doesn’t pay a dime until my total insurance claims total over $2,500 for the year.

International Medical Insurance- Proper Comprehensive Protection for Expat Life Abroad

International medical insurance, sometimes called expat health insurance, is more like your home health insurance but for worldwide use. Your emergencies, injuries, and accidents are covered like a travel medical plan.

However, that is where the similarities typically end. International Health plans are “real” health insurance. They are meant for more extended coverage, not short-term trips. You won’t get trip expenses, lost baggage, or late flight reimbursements.

But you’ll have much better medical coverage, including routine care, pre-existing conditions, and more. It covers checkups, vaccines, eyeglasses, and even alternative treatments, from basic to premium plans. And unlike travel medical, it’ll cover ongoing treatments.

Key Differences Between Travel and International Medical Insurance

The differences between travel and international medical insurance will vary by plan. However, there are a few critical points to keep in mind when choosing an international insurance policy:

Duration of Coverage

• Travel Insurance – targets short-term trips, with limits on how long you can be outside your home country. Most policies only last up to six months. However, some companies focusing on digital nomads have policies that last 364 days or more. These plans are ideal for expats embarking on a holiday, a business trip, or a short overseas visit.
• International Medical Insurance – International health insurance plans are designed with long-term expats. Cover starts at a minimum of one year, but you can extend coverage up to several years. Some policies will cover you for life.

INSIDER TIP: Duration Impact On Long-Term Expats– Travel health insurance typically only covers you for 6 months, with rare policies allowing renewals for a maximum of up to two years. Once the policy ends, your coverage ends. To continue coverage, you must apply for an entirely new policy.

Here’s the kicker. If you claim an injury or medical condition during your initial policy term, it won’t be covered once that policy expires. Why? Because it becomes a pre-existing condition.

That’s where international health plans shine. They offer annual renewability, so you’re covered for illnesses that pop up while abroad, no matter how long you stay. Whether it’s 5 years or forever, these plans have your back, ensuring expats continuous coverage while overseas.

Geographical Coverage

• Travel Insurance – Most travel medical plans are tailored to cover a single trip, often covering multiple countries during the same journey.
• International Medical Insurance – International health insurance offers comprehensive coverage globally, providing expats with cross-border coverage and allowing them access to medical care regardless of location. However, you can save thousands of dollars a year by excluding countries with “expensive” healthcare, like the United States.

Trip Disruptions Coverage

• Travel Insurance – Provides coverage for trip cancellations, trip delays, missed flight connections, baggage loss, and other trip disruptions.
• International Medical Insurance – Primarily focused on providing coverage for medical coverage while living or working abroad for at least one year or more and doesn’t typically cover travel expenses.

Coverage for Pre-existing Conditions

• Travel Insurance – With travel medical insurance, pre-existing conditions are generally excluded.
• International Medical Insurance – International health insurance plans may or may not cover pre-existing conditions, depending on the insurance company and the specific plan. These plans undergo medical underwriting, where a medical underwriter reviews the applicant’s medical history to determine coverage. The underwriter may approve the application, limit or exclude the pre-existing condition, add a premium for additional risk, or deny the application.

Emergency and Non-Emergency Care

• Travel Insurance – Travel medical insurance is designed to offer temporary coverage for emergency treatment during a specific period. Minor, preventative, or non-emergency medical treatment will not be covered.
• International Medical Insurance – is a comprehensive policy beyond emergency care and provides more extensive coverage than travel medical insurance. The benefits of the plans vary, but they can include coverage for pre-existing conditions, routine checkups, vaccinations, dental, and vision.

Monthly Cost of Insurance Premiums

• Travel Insurance – The more affordable option, with typically lower monthly costs but limited coverage.
• International Medical Insurance – Although an international health plan costs more, this type of policy offers extensive coverage, including regular checkups and routine treatments, frequently not covered by travel health plans.

Who Should Choose International Medical over Travel Medical Insurance

• If you’re an expat or planning an extended stay in a foreign country for over one year,
• If you’re older than 60 and need insurance options, many expat health insurance companies will continue coverage for life as long as you apply BEFORE you hit their maximum age cut-off.
• If you live abroad full-time and need additional benefits and health care plan options, including translation services, dental, vision, and chiropractic care.
• If you have cancer, diabetes, or other chronic pre-existing conditions, you’ll find peace of mind with comprehensive coverage of international medical insurance.
• If you are an expat or long-term traveler who wants a comprehensive plan to cover non-urgent care such as preventative medical services, routine doctor visits, and annual health checkups.
• If you’re traveling to a country that requires a certificate of insurance or proof of adequate health coverage to get a visa.
• If you have plans to travel to different countries and need personalized concierge service dealing with unfamiliar healthcare systems.
• If you’re in a country where the skills or equipment of medical providers are inadequate, and you want medical transport or emergency evacuation to your home country for treatment (repatriation).