International health insurance vs travel insurance

The difference between international health insurance and travel insurance is a source of confusion for many expatriates.

Although both are intended for people spending time away from their home country, the purpose of each product is different.?

Not understanding this difference may leave you with the wrong coverage while overseas and high unexpected medical expenses.

What is travel insurance and international medical insurance?

Travel insurance is designed for vacationers and short-term trips abroad and provides protection for travel-related issues such as:

Trip cancellation

Lost luggage

Loss of personal belongings

Hospitalization or consultation resulting from accidental or acute situations

In terms of medical coverage, travel insurance is designed to provide you with short-term medical treatment for accidents and unforseable disease within your area or coverage period.?

The purpose of this is to get you well enough to return home. When you return to your home country, most of the follow-up medical expenses incurred in the country are not covered.

These policies do not cover pre-existing medical condition and on-going treatment. Annual policies are available for frequent travelers but with a time limit on each trip (e.g., 30 consecutive days)

International Medical Insurance: International health insurance is designed for people who live or work overseas for a longer extended time. It covers both emergency and routine medical treatment.

International health insurance benefits vary from plan to plan, but typically include:

? Hospitalization

? Out-patient care.

? Routine medical check-ups

? Maternity

? Dental & Optical

? Some policies may provide coverage for some pre-existing conditions

? Protection against chronic diseases and cancer

? Direct billing

What is the difference between travel insurance and international medical insurance?

Who uses it?

- International health Insurance

They cover a full scope of medical services for expatriates who are living overseas more than 6 months in a year.?

These policies are typically annual and can be renewed for life, offering a long-term protection to users.?

Most international insurers will keep covering on-going medical issues and not ask to undergo new medical underwriting, each new policy year.?

These plans also have direct billing which enable direct payment of healthcare expenses in network hospitals. Coverage may be international or limited to the country of residence.

-? Travel Insurance

These plans are designed to protect travelers on their short-term trips, whether holiday or business, against unexpected medical expenses.?

Features such as medical evacuation and repatriation are common under these plans.

Why is there a significant cost difference between travel insurance and international health plans?

Travel insurance policies are very affordable, since it is meant for short duration and exclude anything preexisting.

The policies can usually be bought from 1 week to a maximum 1 year and different factors will affect the premium (e.g., area of coverage, benefit limit, coverage of non-medical expenses etc.)

International health plans, on the other hand, represent a higher budget, because the coverage limits are a lot higher than travel insurance.?

Plans cover routine medical expenses and items such as maternity, dental & optical, routine checkups, chronic illnesses, and cancer care, which are not included in Travel policies.?

Hence, the risk exposure of the insurer is higher, and some providers offer possibility to renew for life.

Why expatriates choose international health insurance?

International coverage

One of the main benefits of an international healthcare plan is that they can use their policy in different countries.

Higher level of coverage

An international healthcare plan generally offers a high level of protection e.g., most policies cover at least 8M RMB/year/person for medical expenses.

Meanwhile a good international plan will provide cover for evacuation and repatriation and most international health insurers can direct bill medical expenses to avoid financial burden.

They can't get domestic/state cover

In some countries, if a person isn’t a permanent resident or native of the country they’re moving to, local regulations may keep them ineligible to apply for social security or domestic health plans.

They plan to keep moving

International health insurance works well for people who plan, over time, to live in different countries within their region of cover.

So, if you’re going on holiday or travelling on a short-term basis, in a country where you are not covered, think about travel insurance.?

If planning to live abroad for a few years, you should find international health insurance more secure.?

Depending on your circumstances, you might have both types of policies in place at some points in time.

If you’re not sure what your options are or have any questions about health or travel insurance, contact our experts today.

As a leading insurance broker, our experienced advisors are prepared to answer all your questions, and give you a free personalized quote and plan comparison.

We are offering FREE consultations to help you assess your situation and assist

If you wish to know more, feel free to leave us a comment below or to contact us on WeChat: JasonCKman (Jason Man - Business Development Manager at Abacare Group Limited)

in choosing the right plan