Essential Guide to Expat Insurance for Global Nomads
The right expat health insurance policy for global nomads is going to meet the visa requirements of destination countries and provide adequate medical coverage. Expats should review policy terms and get expert advice to secure the best policy.
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Are you ready to embark on a great adventure as a digital nomad? Perhaps you move internationally a lot for work. Whatever the case, keep reading to get a handle on the basics of selecting the right expat insurance.
This blog post from Pacific Prime is an essential guide to expat health insurance for global nomads. We’ll answer common questions, present key decision factors for picking a policy, and offer tips for finding a satisfactory policy.
You can also find more information on global health insurance for expats here.
Is Expat Health Insurance Necessary?
Expat health insurance is a common visa requirement for expats living or working abroad. Besides visa requirements, going without health insurance is a major financial risk. Be aware of the limitations in any domestic health insurance policies issued in your home country.
International Health Insurance Requirments for Expats
Expats moving to another country will require appropriate visas. Each country has its own requirements for visa applicants, but most countries require proof of health insurance before issuing a visa. The country’s visa guidelines will explain what the minimum health insurance requirements are.
Countries with subsidized or publicly funded healthcare programs often do not cover expats unless the expat meets permanent residency requirements. Your destination country’s public healthcare system may also only provide limited medical coverage.
Domestic Insurance Policy Limitations
Domestic insurance policies rarely provide coverage abroad. If you are planning on leaving the country where your health insurance policy was issued, verify coverage. Programs like US Medicare do not provide any coverage outside of the US and its territories.
Your current health insurance provider may have global coverage options. The benefit of selecting a global policy from your current insurance company may provide coverage for pre-existing conditions.
For example, GeoBlue offers travel and international health insurance policies to supplement domestic health insurance in the United States.
Global Insurance Coverage vs. Regional Insurance
Insurance companies offer international health insurance policies as global plans or regional plans. Global plans may include or exclude the United States. Plans including the United States cost more. Regional plans are often more affordable but have a limited coverage area.
If you plan to move around frequently or widely, consider a global plan so that you can anticipate your coverage options abroad. Many major international health insurance providers have extensive direct billing networks, so you won’t have to wait for reimbursement of medical expenses.
Learn what companies are in the top ten international health insurance providers.
How to Purchase Expat Health Insurance
Expat health insurance can be purchased online directly through the insurance company or an insurance broker. Insurance brokers offer free services and partner with multiple insurance companies. Before purchasing, there are important decisions to make about the type of policy you need.
- How large does your coverage area need to be?
- How long do you need an international health insurance policy?
- Is there a waiting period for any of your coverage needs?
- Does the policy cover pre-existing conditions?
- How do I compare quotes?
Let’s take a closer look at each of these decisions that expats need to consider.
Choosing Your Coverage Area
If you plan to stay in a particular region of the world, you may save money by choosing a policy that only covers that area. To cover you in more areas, select a plan with more global coverage. MSH International has five geographic regions to help its customers save money on premiums.
Generally, you’ll find the following types of international health insurance options:
- Local policies issued by an insurance company in the destination country that only covers you in said country
- Regional policies that provide medical coverage in a selected region: This is helpful for expats who want to live in a country with limited medical facilities because they can obtain care in a nearby country with more sophisticated medical options.
- Global coverage excluding the United States: The United States is the most expensive country for medical care. If you have a domestic policy in the United States, or you do not plan to be in the USA, you can save money on premiums by excluding the US from your policy.
- Global coverage including the United States: If the USA is among your destinations, or you plan to stay in the US for extended times without a domestic policy, you’ll want to include the USA on your policy. Otherwise, you could be on the hook for staggering medical expenses!
Coverage Duration
Decide how long you need insurance abroad. Expat health insurance policies last for one year or longer. Insurance policies for less than one year fall under short-term or travel insurance policies. Many expat health insurance policies allow for indefinite renewal for expats under a specific age.
Waiting Periods
Certain types of coverage, such as dental insurance and expat maternity insurance, have waiting periods before benefits can be used. This means you must pay premiums for the length of the waiting period before you can file claims. Be aware of waiting periods when choosing a policy.
If you are planning to start or expand your family during your time living as an expat, you will need to get a maternity insurance plan for up to two years before you plan to conceive. It’s not uncommon for international health insurance companies to have a 24-month waiting period for maternity benefits.
Pre-Existing Conditions
Most expat health insurance plans for individuals and families do not cover pre-existing conditions. Insurance companies will use the underwriting process to determine what if any, coverage can be provided for pre-existing conditions.
A pre-existing condition is any medical condition that you have been diagnosed with, treated for, sought medical advice regarding, or symptoms for which a reasonable person would have sought medical advice before applying for the policy.
The best way to obtain an international health insurance policy with pre-existing condition coverage is to get a group insurance policy or secure a plan through your employer.
Comparing Expat Health Insurance Quotes
Expats can compare quotes by visiting individual insurer website pages and getting estimates. Another way to compare health insurance quotes is to work with an insurance broker who will help you compare multiple policies within your search parameters for free.
If you have questions, you can also speak with an insurance expert for tailored advice.
Tips On Finding the Best Expat Insurance Policy
Finding the best expat health insurance policy involves collecting information from other expats, and using insurance advisors to understand, compare, and review policy terms. You can find an insurer with direct billing options to avoid having to wait for reimbursement.
We’ll explain each one of these tips in greater detail below.
Ask Other Expats
Check out reviews from members of a desired insurance company. Speak with other expats to find out which companies they used and what their experience was like. An insurance company may claim outstanding customer service, but their customers will tell you the reality.
Find an Impartial Insurance Expert
Talking to an agent for the insurance company can be a great way to get policy information, but it’s not an impartial way to learn about customer service or how fair their claims processes are. An insurance broker represents more than one company and is a better source for impartial advice.
An insurance broker represents you and wants to keep your business so that they will make recommendations based on your needs and preferences. An extra benefit of using an insurance broker like Pacific Prime is access to dedicated claims support for clients.
Understand and Compare Policy Terms
You’ll need to understand what the policy terms and coverage descriptions mean. This is one area where an insurance agent or broker can be especially useful for explaining terms like coinsurance or benefit limits. Once you understand, you need to compare plans.
Premiums for health insurance are just the beginning of plan comparisons. Benefit limits, coverage exclusions, and direct billing options play a factor in the quality and affordability of a health insurance plan.
Make sure your plan is comprehensive enough to protect you from major medical expenses.
For example, one significant way that expat insurance varies is coverage for prescription drugs. Many companies have a benefit limit for or exclude outpatient prescription drugs.
Consider Direct Billing vs. Reimbursement
Major insurance companies have deals with hospitals that allow the hospital to bill your insurance company on your behalf. Without direct billing agreements, you have to pay upfront and seek reimbursement from your insurance provider.
The more extensive a direct billing network is, the easier it is to find care in the network. If you’re looking for large direct billing networks to make accessing medical care easier, check out the ten best international health insurance providers.
Health Insurance Costs by Primary Country of Coverage
Expats will find the highest premiums for coverage in the United States, and the lowest premiums in Thailand on average. The cost of health insurance premiums is related to the cost of medical care in the country.
The following table compares the estimated costs of international health insurance premiums for an individual in the most expensive country and the most affordable country.
| Estimated Cost of International Health Insurance Premiums for an Individual | ||
| Highest Premiums on Average | United States of America | USD $9,817 annually |
| Lowest Premiums on Average | Thailand | USD $3,594 annually |
Estimates taken from Pacific Prime’s 2023 Cost of Insurance Report.
Don’t forget that insurance companies offer plans that exclude coverage in the United States. If you don’t need to travel to, work in, or live in the United States, you can exclude it from your plan to save money on premiums.
For global or digital nomads would would like to factor the cost of health insurance to where they decide to live, here are the five most expensive countries for health insurance. For a more comprehensive and detailed list of countries and premiums, download the Pacific Prime’s free report.
| Health Insurance Premiums in the 5 Most Expensive Countries | ||
| Country | Individual Annual Premiums | Annual Premiums for a Family |
| United States | USD $ 8,817 | USD $28,250 |
| Hong Kong | USD $7,810 | USD $22,067 |
| Singapore | USD $7,028 | USD $20,351 |
| Dubai | USD $5,687 | USD $17,637 |
| Taiwan | USD $5,532 | USD $15,396 |
Frequently Asked Questions
What kind of health insurance do digital nomads need?
Digital nomads need health insurance that covers them in all of their destinations. Global health insurance policies, which may include or exclude the United States, are available through international health insurance companies.
How much is International Health Insurance for Expats
International health insurance costs range from USD $3,600 to $9,000 annually, depending on the area and type of coverage. Costs depend on the cost of medical care in covered countries. The United States is the most expensive country for medical expenses and insurance coverage.
How does expat health insurance work?
Expat health insurance works like other private insurance policies. You can select providers and facilities within the expat health insurance plan’s network. Many international health insurance companies have direct billing networks so you don’t have to cover the medical bill upfront.
Conclusion
Expats who are familiar with the policy terms and have been able to compare multiple insurance companies are more likely to find a satisfactory expat insurance policy. An insurance broker like Pacific Prime will help you do just this, and you won’t have to pay an extra penny.
Contact Pacific Prime today online or by calling toll-free at 1-800-868-1451.
You can also use Pacific Prime’s free quote generator to explore options on your own. You can watch this tutorial for more information on how to use a quote generator.
Serena earned her Bachelor’s Degree in Psychology from the University of British Columbia, Canada. As such, she is an avid advocate of mental health and is fascinated by all things psychology (especially if it’s cognitive psychology!).
Her previous work experience includes teaching toddlers to read, writing for a travel/wellness online magazine, and then a business news blog. These combined experiences give her the skills and insights she needs to explain complex ideas in a succinct way. Being the daughter of an immigrant and a traveler herself, she is passionate about educating expats and digital nomads on travel and international health insurance.
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