Expatriate Health Insurance

If you’re considering expatriating or you’ve already made the move abroad, the thought of medical care will naturally have crossed your mind at some point.  Why else would you be reading this!

However, health insurance - dull as it is - is not usually the first thing we think about when planning our move abroad; usually things like housing and employment dominate our thoughts ...but there comes a time when our health and how to afford to keep it will cross our minds…which is why expatriate health insurance is big, big business!

There are seemingly more and more companies offering the same product, slightly re-branded, year on year.  So how on earth do you choose the plan and policy that best suits your own particular health needs and the on-going long term requirements of your entire family?

It’s a little bit of a minefield if the truth be told - and the universal truth seldom ever is told as there is very little independent information out there!  This article should redress the balance a little and help you make informed decisions for the good of your health. 

The information contained herein is general and not based on any one product or product provider.  When it comes to purchasing health insurance make sure you check out every aspect of any policy you are considering from at least the following points, and if possible seek the guidance of an independent financial adviser with global focus - that way you can be assured of finding a policy that will not only match you personal requirements, but one that is suitable and applicable for the country you’re moving to.  Alternatively you can get an instant quote online from GoodHealth if you’re in a hurry!

How much should expatriate medical insurance cost?

According to every single health insurance company you come across, globally medical cost rises are between two and three times higher than inflation - which I suppose justifies their exorbitant premiums!  It also means that as medical costs rise and when claims rise, so your premiums will rise yearly - usually whether you personally make any claims or not.

It is key to remember that insurance companies are not in the business of losing money after all!

If you have any pre-existing conditions or you’re employed in a less than completely safe job or in a less than completely safe country,  expect some companies to charge you a higher than average premium or refuse you certain levels of cover.

If you would like to take out insurance for your whole family, some companies offer family policies which work out cheaper than insuring each member individually.  However you can run into difficulties if you would like different family members to benefit from different levels of care.  For such flexibility expect to pay more.

What about medicals & pre-existing conditions?

Some companies will still offer you complete cover depending on the nature of your pre-existing condition, you must declare it and you may have to undergo a medical and then it is down to the particular insurer’s underwriters to look at how much of a risk you are to them financially.  It really is that base!  If it looks like you could suffer recurrent problems that will lead to large or ongoing payouts then they are less likely to consider you without either increasing your premium, increasing your excess or excluding the given condition.

Depending on the company you favour, the level of care you choose and your age, you may be required to undergo a medical before cover is granted.  This is not the norm however.  It can sometimes work in a person’s favour though…if they can prove they have no pre-existing conditions and are healthy and low risk they may benefit from better levels of care offered and/or lower premiums.

Excesses and cover waiting periods

Some conditions have waiting periods before you can claim - pregnancy is the main one.  Usually you have to have been paying into your insurance policy for at least a year before they will cover you for pregnancy.  This isn’t such a bad idea for the majority of policy holders (unless they’re already pregnant of course!) as it stops people joining up for a short period to benefit from cover for the duration of their given condition - this would weigh heavily on other policy holders’ premiums in the long term.  Again it comes down to how much and how often the insurance company has to pay out.  The more they have to pay out, the more often they have to pay out, the more they will charge their policy holders to cover all claims and to cover their overheads and profits.

When it comes to the excess you have to pay, it is usually prettied up and called something like an annual deductible in an attempt to hide the fact that it is yet another amount on top of your premium that you have to pay - and you either pay a set amount over the entire year or you pay a set amount per claim.  For example, if you have an annual excess of £1,000 then you pay for every single medical bill until they exceed £1,000 then you can look to your insurer to foot the bill.  The excess restarts every 12 months.  If you have a per claim excess of say £50 then you simply pay the first £50 of every single medical bill you receive.

I know what you’re thinking - but who said anything about insurance being fair?  It does at least provide peace of mind though!