International health insurance is necessary – especially if you live abroad or travel extensively for long periods of time.
People often ask, “Do I need short-term or long-term health insurance abroad?”
The only way to answer the question is to discuss the difference between short-term and long-term health insurance and then apply this information to your personal situation.
Read on to learn which type of international health insurance is right for you.
Long-Term International Health Insurance
Long-term health insurance is designed for expats or foreigners living outside of their passport country permanently (or for a lengthy period of time).
Today, many long-term health insurance policies are global and include coverage for the United States.
So, for those who are concerned about traveling back to the states and not being insured, you’ll be covered.
Who Needs Long-term International Health Insurance?
Long-term international health insurance is recommended if you are planning to live in a country other than your passport country for more than 6 months.
Just as in your home country, accidents and/or illnesses can happen when you least expect them.
This is why some countries, particularly in Europe, may require their citizens to maintain long-term health insurance coverage while living abroad.
In addition to protecting your own health while you are abroad, long-term health insurance also covers all family members, including newborns.
Not everyone can get a long-term international health insurance policy.
NOTE— Not everyone can get a long-term international health insurance policy. Most carriers require proof of address in your expat country, such as a bank statement, cell phone bill, or utility bill. And it may not be possible if you have pre-existing conditions.
What Does Long-term Health Insurance Cover?
Comprehensive international health insurance policies can cover a wide range of medical expenses, including but not limited to…
- Doctor visits
- Medications
- Medical tests
- Diagnostic tests
- Surgeries
- Anesthesiologist fees
- ER visits
- Long-term treatments for chronic conditions
- Medical transportation
- Physical therapies
- Home healthcare
- Preventative care
- ICU
- In-patient care
- Hospital accommodations to accompany minor(s)
- House calls and telemedicine (for some policies)
- Palliative care
- Hospice care
- Maternity (waiting periods may apply)
Additionally, long-term health insurance generally covers preventative coverage, such as skin cancer screenings, prostate exams, and mammograms, with a maximum benefit of $100 – $200 USD, depending on the policy.
While there is no need to meet a deductible, there is typically a waiting period of about ten months or after the first policy year.
Long-term health insurance also covers medical emergency transportation and/or evacuation.
But this only applies if the facility you are in is not able to treat you properly, and you must be moved to a better facility (it does not mean you can go to your hospital of choice).
Some policies include a benefit for traveling outside of your resident country (aka travel riders), but there are limitations, such as the emergency must happen within the first 30 days of travel and there is usually an allotted maximum coverage amount.
The exact coverage depends on your policy and insurance carrier.
How Much Does Long-term Health Insurance Cost?
While the cost of healthcare may be lower in countries outside of the United States, these costs are still rising.
If you have long-term health insurance, you can lessen the pain of expensive medical bills.
In other words, the cost of paying for a long-term health insurance policy is well worth it.
The cost of long-term health insurance varies between policies and is dependent on several factors, including:
- Passport country/country of residence
- Personal details, such as your age and gender
- Types and level of coverage
- Pre-existing health conditions
- Deductibles
Let’s look at 2 examples to give you an idea of costs. These are not exact figures, but will give you an idea of what you could expect to pay.
Let’s say you’re a 32-year-old woman and you’re single. Here are annual premium averages with a $5000 deductible:
- $1,000,000 maximum coverage – $1,600
- $500,000 maximum coverage – $1,400
- $250,000 maximum coverage – $1,300
Here are annual premium averages if you’re a 65-year-old single woman with a $5000 deductible:
- $1,000,000 maximum coverage – $5,600
- $500,000 maximum coverage – $5,400
- $250,000 maximum coverage – $4,800
Before you commit to a policy, shop around and compare plans to ensure you are getting the best price for the right amount of coverage for your personal health needs.
Don’t make the mistake of choosing the cheapest international medical insurance.
While it may be the cheapest policy, it may offer only the bare minimum coverage with high deductibles.
[Related Read: How Much Does Expat Health Insurance Cost in Mexico?]
What Are the Benefits?
There are many benefits of long-term health insurance for expats, including:
- Comprehensive coverage
- Renewal options
- Potential long-term savings
- Upfront cost benefits should a health emergency occur (such as not having to pay out-of-pocket)
- Lifetime renewal guarantee (even after aging out of eligibility)
Short-Term International Health Insurance (or Travel Insurance)
Short-term health insurance is essentially travel insurance. This is a solid choice for short-term holidays or vacations.
What Is Short-term International Health Insurance?
Short-term health insurance covers general health and emergencies for travelers, short-term residents, and those in between long-term plans.
Who Needs It?
Short-term health insurance provides general coverage for health and emergencies and is best for those traveling abroad for six months or less.
Travel insurance is similar, but it tends to only cover emergency medical treatment and not general health. Also, it does not cover pre-existing conditions.
If you select travel insurance, you will also receive coverage for things beyond emergency medical coverage, such as travel issues (lost luggage, etc.).
What Does Short-term Health Insurance Cover?
Short-term health insurance covers most daily healthcare needs and emergencies for those abroad, but exact coverage varies depending on the policy.
Generally, short-term health insurance covers the following:
- Hospital visits
- Medical care
- Surgeries
- Prescription drugs
- Doctor visits
If you do choose a short-term health insurance policy, it’s critical to make sure the plan offers emergency expatriation (or covers the cost of emergency transportation to another country or medical facility).
Unlike long-term health insurance, short-term health insurance has more limited coverage for pre-existing conditions and routine care.
Travel insurance only covers emergency medical care. It does not provide coverage for day-to-day medical needs, such as prescriptions.
How Much Does It Cost?
Like most insurance policies, short-term health insurance costs vary greatly from one policy to the next.
The amount you pay will be determined based on…
- Length of your trip (typically, travelers can choose between a 3-, 6-, or 9-month policy)
- The destination of your trip
- Deductible and maximum coverage benefits
- Your personal details
- The coverage
For example, if your coverage includes preventative care or medical evacuation, your premium will likely be higher than those with less coverage.
Cost is why some travelers opt for travel insurance instead.
With travel insurance, you have more options for the maximum benefit limits and for deductibles, making it quite affordable.
What Are the Benefits?
There are many benefits of short-term health insurance for those traveling extensively, including:
- Affordability
- Flexibility
- Comprehensive coverage
- Ease of obtaining coverage
Do I Need Short-Term or Long-Term Health Insurance Abroad?
Now it comes down to determining which type of international medical insurance is right for your personal situation.
Long-Term Health Insurance
Long-term health insurance is ideal for expats, retirees living abroad, and digital nomads or those traveling around for up to two years outside of their passport country.
Short-Term Health Insurance
Short-term health insurance is the right choice for those traveling for under six months outside of their passport country or digital nomads who travel back and forth through the year and are not away from their passport country for more than a few months at a time.
Short-term health insurance is also a good choice for those looking to bridge the gap between plans while traveling or living abroad.
Tips for Choosing the Right Long-Term or Short-Term Health Insurance
Ultimately, health insurance for expats is a personal choice.
Use the following tips when deciphering the difference between short-term and long-term health insurance and which is best for your personal situation.
- Get recommendations from friends, expats, forums, and Facebook groups.
- Research reputable insurance providers.
- Compare quotes from multiple providers.
- Read the policy terms and conditions carefully.
- Consider your individual needs and budget.
- Consult with an insurance broker if needed.
