Summary: Insurance Contract can be pretty complicated and when it comes to Health Insurance things can get even more confusing with terms like Deductible, Coinsurance, Pre-existing Conditions Limitations, Exclusions, Waiting Period, Limits Per Claim, Limits Per Year, Limits Per Lifetime, etc., etc.
In this article, the author has highlighted the key features to be considered when choosing an International Health Insurance plan.
Things to consider when choosing an International Health Insurance Plan
Most will agree that Insurance Contract can be a pretty complicated document to comprehend and when it comes to Health Insurance things can get even more confusing with terms like Deductible, Coinsurance, Pre-existing Conditions Limitations, Exclusions, Waiting Period, Limits Per Claim, Limits Per Year, Limits Per Lifetime, etc., etc.
The following are, in our opinion, the key features to be considered when choosing an International Health Insurance plan.
Insurer’s Financial Standing
There is no point having an insurance policy that covers everything under the sun but when it comes to paying claim the insurer can not meet her obligation. So, the first thing you should look for when choosing an International Health Insurance plan is the financial strength of the insurance company underwriting the risk. You want to look for an insurer that has a credit rating of at least A or A- assigned by AM Best Rating Agency which means the insurer has “Excellent” financial strength.
Administrator’s Track Record
Unlike traditional health insurance plan that provides you coverage within your home country, International Health Insurance needs to cater you with worldwide protection wherever you are and whenever you need it. Hence, you want to make sure your plan administrator has the experience in covering worldwide travelers and able to provide worldwide assistance on 24/7/365 (24 hours a day, 7 days a week and 365 days a year) basis. A good gauge is to look at the number of Members covered by your plan administrator.
Worldwide Assistance
When you are in a foreign land, you are facing the risks of:
- Not knowing where to go or who to turn to when you have a medical situation in a foreign country;
- Exposing yourself or your loved ones to sub-standard medical care that may further exacerbate your pain and suffering and putting your life at risk;
- Emergency medical situations that may require you to be evacuated to save your life;
- Emergency situations that develop due to act of war, terrorism or natural disaster
So, being able to speak to someone that speaks your language when you are in any of the above situation can be reassuring and in the case of emergency it can mean live or dead.
Ideally, your plan administrator should also provide a worldwide toll-free number for you to call for assistance from anywhere around the world.
Geographical Coverage
Due to the high medical costs in the North America, typical International Health Insurance will have 2 separate plans; one covers USA & Canada and the other excludes. Obviously, plans that cover USA & Canada cost more than those that don’t. So, choose a plan that has the geographical coverage that matches your overseas itinerary.
Continuation of Coverage
Continuation of coverage should be one of the most important considerations when choosing a health insurance plan. Why? Because of the peculiar clause called “Pre-existing condition” found in almost all health insurance contracts. Simply put it, pre-existing conditions are medical conditions that have manifested before you purchase the insurance policy.
There are actually two aspects in terms of coverage continuation.
First, you want to look for a health insurance plan that is guaranteed renewable and at each renewal there will be no further medical underwriting (that is no medical question asked). This is important because as we age, we all going to develop some kind of medical conditions. Therefore, you want to choose a plan that will cover these medical conditions that you have developed over the years just like any other illness. On the same token, it would be wise to stay with the same health insurance plan for as long as you can.
Secondly, continuation of coverage means you should be able to continue with your coverage or with the same insurer when you relocate to another foreign country or back to your home country. Again, the main consideration here is you don’t want to have to reapply for a new health insurance policy when you relocate or move back home and you don’t want to subject yourself to another medical underwriting and pre-existing condition limitations or exclusions.
Pre-existing Conditions Limitations
The above paragraphs should provide you with a good understanding of the importance of pre-existing conditions in health insurance coverage. You should always declare all pre-existing conditions you have in your insurance application. Why? Because any claim related to undeclared pre-existing condition will be rejected by all insurers and any declared pre-existing conditions if accepted by insurer will be covered, in full or in part, as any other illness.
So be sure you understand what the pre-existing conditions limitations are, if there is any, when choosing an International Health Insurance plan. If you are relatively healthy, then pre-existing conditions limitations clause should not be a major concern to you.
Exclusions
Most health insurance plans come with a list of exclusions and if you compare them, they are pretty much the same set of exclusions. In other words, exclusions are quite standard. Why do health insurance plans have exclusions? The answer is simple. Insurance premiums are developed based on averages – average person with average health in the case of health insurance – in order to make sure that you are not paying for any medical condition that you don’t have or any medical service that you don’t need. The exclusions list helps to keep the premium rate down.
In short, to most people exclusions should not be a major concern in deciding which International Health Insurance plan to choose from.
Deductible & Coinsurance
Deductible and coinsurance are your part of cost sharing in paying medical claims. The higher your cost sharing, the lower your premium rate will be. The deciding factor here is what is your budget for the International Health Insurance plan? And what you can afford to pay or prepare to fork out should a claim arises?
Comparing to all the other factors mentioned here, Deductible & Coinsurance should not be the overwriting factors when it comes to deciding which International Health plan is more suitable for you and your family.
Go see the world, but don’t leave home without a good International Health Insurance!
Bio: GHI (Global Health Insurance) Specialists is a firm specializes in providing quality International Health Insurance solutions to customers worldwide. Consultants at GHI Specialists have a combined experience of more than 50 years in insurance and employee benefits industries with Clients from all over the world. For more information on quality International Health Insurance plans visit our website at: www.BuyInternationalTravelHealthInsurance.com
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