Why buy international medical insurance?

Does your existing health insurance cover foreign travel?

Should you keep your existing health coverage if you are traveling long term?

Do you have a completed itinerary, or is your travel time open ended?

Do you have any pre-existing medical conditions?

Will you be spending any time in your home country during your trip?

Will you be participating in any hazardous sports?

Are you concerned about the cost of an emergency medical evacuation?

Would you prefer a lower deductible, or a lower premium?

Who will you choose to be your beneficiary?

Need help deciding which policy is best for you?

 
Why buy international medical insurance?

If you live in a country which provides for your medical care, you are certainly aware of your coverage boundaries.  If you are a U.S. citizen living abroad, traditional sources of U.S. private health insurance will not meet your needs.  Geographical exclusions and provider limitations common to these policies will restrict or even eliminate the coverage available to you while you reside outside the U.S.  At the same time, you may not be eligible for participation in the government sponsored plans in the country where you are living.  Or you may wish to have access to health care in other countries, including the U.S., in the event you become seriously ill. 

Regardless of citizenship, you may need an international medical policy to completely cover your health insurance needs, while you are outside your home country.  Or, you might just need to supplement the coverage available to you through your government sponsored plan, or private insurance policy.  If your lifestyle knows no geographic limits, you need health insurance that knows no boundaries as well.

Global commerce and international travel are no longer the exception; they are the rule. Many first-time international travelers do not realize that healthcare in other parts of the world is very different than in the U.S. Many steps need to be taken to protect yourself from accidents and unforeseen illnesses while abroad.  Even seasoned business travelers often overlook the need for medical insurance, assuming that their domestic medical plan will provide coverage.

Managed care in the form of HMO’s and PPO’s have severely restricted access to health services in the U.S., and some have excluded coverage overseas. Outside the U.S., social medical systems rarely extend beyond a country's borders and will not provide coverage to foreign nationals.  Today, there is a very solid selection of international insurance products available, offering quality benefits, at reasonable prices, and backed by dependable customer service.

International travel and living is exciting. However, such excitement can quickly give way to the sad reality of a medical condition, or accident, if you don't have adequate coverage and support services. It may be as simple as finding a qualified English-speaking doctor, or as difficult as requiring an emergency evacuation from an accident site. Chances are, your insurance may not perform in such cases.  Issues related to foreign healthcare policies, languages, currencies, cultures, and the location and access to healthcare are seldom handled by domestic medical plans.  Insurance offering international benefits is designed and administered by experts in the global market.  Buy a specialty product from an industry specialist!

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Does your existing health insurance cover foreign travel?

If you are a U.S. Citizen, traveling abroad, your current health plan probably covers you while out of the country, for up to six months. These benefits apply only if you are vacationing. Your U.S. policy will not cover you if you reside abroad. You need to speak with your insurance company and have them explain your international benefits to you.  Find out if you are covered for emergencies and accidents only, or minor illness also.  An insurance company's definition of an emergency can be vastly different from yours. 

You need to know the rules for utilizing your policy overseas.  Bills for medical services must contain the following:  1 - Itemization of services rendered. 2 - The procedure codes must be listed. 3 - The invoice must include a diagnosis, (the claim won't be processed without the diagnosis code) 4 - The invoice must also be translated into English, and converted to American dollars.

Ask your insurance company if they have a hospital or physician provider list, for your destination city, that they may require you to adhere to. Find out if your policy can be billed directly for medical charges, or must you pay the provider, at the time of service, and rely on a re-imbursement from your insurance company.

If you feel that your current health plan offers adequate international medical benefits, you may want to supplement these benefits with a temporary policy to add coverage for an emergency medical evacuation or repatriation.  For the frequent traveler, there are "stand alone" policies available to add just these benefits.

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Should you keep your existing health insurance if you are traveling long term?

Tough question for those who have individual coverage.  Keeping your existing policy in force will certainly guarantee you coverage when you return home.  If you let your existing policy lapse while you are gone, and a serious medical situation arises abroad, you could return home to find yourself uninsurable.  However, if you will be out of the country for an extended period of time, it could be costly paying for two policies.  There is no easy answer.

One option could be to lower your current policy premium by reducing your existing benefits while you are gone.  If you returned home uninsurable, you would not be able to change back to the benefits you had before you left, but at least you would have a policy to return to.

If you have health insurance through your employer, you need to thoroughly discuss your coverage options with the employer and/or the insurance company.  If you are traveling for your job, find out about your workers comp coverage, and if you will be covered in the country(s) you will be working in.

If you decide to lapse your U.S. coverage while you are abroad, you can plan to have your international policy cover you when you return home.  If you apply for domestic coverage as soon as you return, you will have to wait several weeks for the policy to be underwritten and issued.  If you plan for it, you can extend your international coverage for up to 60 days, which will cover you while you are underwritten for a new domestic policy.

Some temporary international plans have an optional rider for coverage in your home country.  These riders usually offer 5 days of home country coverage, for each month that the international plan is paid for.  For example: you purchase a policy for a total of 6 months, you earned 30 days of home country coverage, which can be used at the end of the policy period, when you are back in the U.S.  Likewise, if you carry an international policy for 12 months, you will be covered for 60 days at home.

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Do you have a completed itinerary, or is your travel time open ended?

If you know exactly how long you will be gone, you can purchase a temporary medical policy for this time period, with a lump sum premium payment.  No need to be concerned with policy renewals.  The deductible and co-payment will apply to the policy period purchased.

If your travel plans are open ended, or if you will be traveling longer than three to six months, you can buy a temporary policy which is renewable.  Three years is the maximum amount of time a temporary policy can be renewed.  With a renewal option, the deductible and co-payment will apply annually, based upon the policy issue date.  If your travel plans go beyond six months, coverage is more cost effective if purchased on a long term basis... three months renewable up to three years.

Temporary policies can be issued within 24-48 hours upon receipt of the application, or per a requested effective date (usually the day you leave your home country).

NOTE:  If you are buying a policy for more than 12 months, be sure your deductible is applied on an annual basis, and not on a "per occurrence" basis.

Another option to consider, for long term travel coverage, or for the frequent traveler, is a permanent global medical policy.  The wonderful thing about a permanent policy is that it can be used anywhere in the world, even in your home country, (except for U. S. Citizens, who can not use the policy while living in the U.S.).  This would be an ideal policy for people who are concerned about continuing their coverage after their travels have ended.  A permanent policy gives you the ability to seek the best medical care in your home country.  Or you might choose to be treated in another country that may have more advanced medical services available.  These policies are subject to medical underwriting, but once issued, will be in force for as long as you pay the premium.

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Do you have any pre-existing medical conditions?

Temporary policies are not subject to medical underwriting, and therefore do not cover any pre-existing medical conditions. Some policies offer coverage (usually $500 - $2500) for an "Unexpected Reoccurrence" of a pre-existing condition.

A "Pre-existing Condition" is defined as a condition that would have caused a person to seek medical advice, diagnosis, care, treatment, or follow-up visits, during the 3 - 5 years (depending upon the policy) prior to the effective date of the travel coverage.  This is why temporary policies can be issued within 24-48 hours upon receipt of the application and premium payment.

The permanent policies may cover some pre-existing conditions.  Since these policies are subject to underwriting, the insurance company can make a decision to cover a pre-existing condition at no extra cost, they can decide to cover the condition with an increase in the premium, or they may issue the policy with a waiver of coverage for the condition for a period of time, or permanently.  This means that the policy will not cover your current medical condition, but it will pay for all other covered medical services.  Applications for these policies can also be declined due to a medical condition.

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Will you be spending any time in your home country during your trip?

Travel medical policies are designed to cover you when you are outside of your home country.  If you return home, for even just a couple of days, during your trip, your travel policy will not cover you.  If you can participate in your country's healthcare system, you need not be concerned about trips home.

But if you are vulnerable to medical expenses, while in your country of residence, you need to add "Home County Coverage" "to your travel policy.  This option covers you for incidental trips to your home country.  The policy will give you five days of home country coverage for every 30 days of travel coverage purchased, after the first 30 days of the policy.  For instance, if you pay your first premium quarterly, you just earned 15 days of home country coverage.  If you are planning for a longer trip home, you can pay up to 12 months in advance, to earn the maximum 60 days of home country coverage, per year. 

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Will you be participating in any hazardous sports?

What are considered hazardous sports?  Mountaineering where ropes or guides are normally used, hang gliding, parachuting, bungee jumping, racing by horse or motor vehicle or motorcycle, snowmobiling, motorcycle / motor scooter riding (for fun or for transportation), scuba diving involving underwater breathing apparatus (unless PADI certified), water skiing, snow skiing and snow boarding.  If you will be participating in any of these activities, OR, any thrill seeking activities (even if not specifically excluded by name) that expose you to abnormal or extreme risk of injury, you need to purchase a policy with an optional Hazardous Sports Coverage Rider.

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Are you concerned about the cost of an emergency medical evacuation?

If you feel that your current health plan offers adequate international medical benefits, you may want to supplement these benefits with a temporary policy to add coverage for an emergency medical evacuation or repatriation.  For the frequent traveler, there are "stand alone" policies available to add just these benefits.

Depending upon your need to be adequately covered for the costly expenses of a medical evacuation... you could purchase a temporary medical policy simply for the evacuation coverage. You will be doubling up on the medical coverage, but if you choose the highest deductible, you can get the lowest premium. The deductible does not apply to medical evacuations. Your current medical insurance should compensate for the high deductible on the temporary plan. This way you can have $100,000 of evacuation coverage for a very reasonable premium. Please email us for advice on the best policy to use in this situation, and for a premium quote. Or, go directly to the Liaison International Plan.

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Would you prefer a lower deductible, or a lower premium?

All policies require you to "share" in the cost of your medical expenses by way of a deductible and co-payment.  Your financial liability is the amount of money you are willing to pay, out of pocket, before your policy pays 100% for your medical services.  First, you pay all of your deductible amount.  For instance, if you have a $500 deductible, you pay the first $500 of medical expenses per year, or certificate period.  After your deductible has been met, you then have a co-payment amount to satisfy.  This is most commonly 20%.  As medical expenses are incurred, after your deductible has been met, you are responsible for 20% of these expenses, the insurance company pays the 80%.  This 80/20 payment percentage is applied to the next $5,000 of medical expenses incurred after the deductible has been satisfied.  Based upon this formula, 20% of $5,000 is $1,000.  Therefore, the maximum co-payment you will have is $1,000.  In this example, your deductible is $500, and your co-payment is $1,000, therefore your maximum out-of-pocket liability is $1500.

You must decide how much liability you are comfortable with.  Your premium rates are relative to your financial liability.  The larger the deductible, the lower the premiums.  Policy deductibles can range from $100 to $2500.  Generally, the premium for a $100 deductible plan is quite high, and may not be worth the premium expense.  Likewise, the premium savings offered for a $2500 deductible is not worth accepting such a high liability ($3500).  The most cost effective deductibles are usually the $500 or $1000.  When premium shopping, keep in mind that you have your deductible and your co-payment that you are responsible for.

NOTE: Most policies, do not charge a co-payment for medical services rendered outside of the United States and Canada.  In all other countries, your annual liability is your deductible only.

Another factor to figure into the equation is the maximum policy benefit amount.  Policies range from $50,000 up to $1,000,000 polices.  (The permanent plans are $5,000,000 policies.)  Obviously, the larger the policy, the higher the premium.  If you want a small deductible, consider choosing a smaller policy maximum.  Also take into consideration the countries you will be traveling to.  If you are traveling to a country where medical expenses are higher, you will need a larger policy.

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Who will you choose to be your beneficiary?

All travel policies have an accidental death benefit.  This benefit amount varies between policies, from $5,000 to $25,000.  This is a cash payment, paid to your beneficiary, if you loose your life accidentally.  Beneficiaries are usually a family member, close friend, or you can choose to have it paid to your estate.

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Need help deciding which policy is best for you?

Please feel free to contact us!  We are here to help you find the most appropriate policy for your coverage needs.  Please provide us with the following information. Your answers will help us to determine the best policy for your coverage needs.

Thank you for your interest in international medical insurance.  We look forward to assisting you with your coverage request, and we welcome your questions and concerns!

Could you use a virtual house call?... How about a real house call in your hotel room?... Get the latest global medical information for your destination country from a Travel Clinic.  Be prepared for medical situations by checking your destination city, or country, for the names of physicians and clinics.