Travel Insurance vs. Health Insurance: What’s the Difference?

Travel insurance provides cover for emergency treatment while you’re abroad for a shorter period. International health insurance, on the other hand, provides comprehensive healthcare for those relocating from their home country for a sustained period.

Not knowing the difference between the two may also leave you with the wrong type of coverage, along with limited coverage for sudden events and unexpected medical bills. Which one should you buy before starting your journey abroad? Read on as this Pacific Prime article explains the difference.

What is Travel Insurance?

Travel insurance plans are coverage that’s designed to protect you from risks and financial losses that could happen while traveling, such as:

• Lost luggage or travel documents
• Travel delays
• Theft of personal belongings
• Personal liability
• Trip cancelation
• Emergency medical coverage
• And more!

Regarding medical coverage, it’s important to highlight that travel insurance is intended to provide short-term emergency medical treatment within your specified destination or period of cover.

Such medical coverage may also be limited; if further treatment is required, you’ll be expected to receive it back home. Thus, for minor or non-emergency procedures, you’ll likely have to pay out of pocket or use an international health insurance plan that you’ve taken out.

What is International Health Insurance?

International health insurance for expats, on the other hand, provides a comprehensive level of healthcare to those who are looking to spend long periods overseas.

Here are a few more details about health insurance to know about.

• A typical coverage policy charges monthly, quarterly, semi, or yearly premiums, as well as varying deductibles for medical services at home and abroad.
• The extra benefits, such as protection against theft of personal documents or missed flights, are not traditionally included in an international health insurance plan. This is because an international health insurance plan is solely focused on providing health coverage.
• An international health insurance plan covers you for the length of your stay, even if you are relocating from one country to another.
  • (Do note that if your plan offers worldwide coverage, excluding the US, then you will be covered wherever you are in the world. If you plan to travel to the US, you can opt for a plan to cover the US, but be aware that premiums will likely be higher. For further reading, see Health insurance when traveling: Should you include the US?)

• Last but not least, you can get coverage for pre-existing medical conditions. But such plans will require you to pay a higher premium or you must wait for a certain period to pass before you can make a claim (also known as a waiting period or moratorium).

(Do note that insurers will virtually exclude all pre-existing conditions, but options are available. To learn more, visit Pacific Prime’s page on pre-existing conditions.)

Further reading: Factors influencing international health insurance premiums for expats

Things You Need to Consider Before Buying Travel Insurance

After booking your flight for your dream getaway, it’s wise to secure yourself a travel insurance plan. But before you do so, here are a few things to consider:

• Are you a frequent flyer? – Flying abroad more than two to three times a year will make you a frequent flyer. There are several plans for you to choose from, such as a single plan for short trips, a multi-annual trip plan for frequent flyers, as well as specialized plans tailored for students and senior citizens as well. The premium depends on the type of plan you choose, as long as the duration of the plan.
• How long is your trip? – Longer stays abroad correlates to higher premiums. For example, going on a week’s trip to the U.S. will cost a lot less than someone traveling there for a month.
• How’s your medical report? – Your age and health are essential to securing your annual travel insurance plan. If you are in your 20s with no health issues, then you’ll have an easier time securing better coverage with lower premiums compared to a more senior traveler. Those with a history of illnesses will often need to pay higher premiums.
• Where are you traveling to? – Most insurers provide different plans based on your geographic destination, as there are country and region-specific plans. For example, medical costs in Europe would be higher than those of some Asian nations, which is an important factor in your premium calculation.
• What’s your itinerary? – If you have plans to include sporting activities such as skiing, trekking, or water sports, be sure to tick in the special coverage box by paying extra, as most insurers will not cover medical expenses related to extreme sporting activities.

Things You Need to Consider Before Buying Health Insurance

Conversely, here are a few things for you to consider before securing your international health insurance.

• What are your healthcare needs? – Ask yourself if you want inpatient coverage, outpatient coverage, or a combination of both. Inpatient benefits will help cover expenses for an overnight hospital stay, whereas outpatient benefits cover frequent visits to the doctor.
• Which are the most important benefits to you? – Most insurance plans include inpatient coverage, outpatient coverage, and vaccinations. Many expats also look for benefits that cover health checks, dental treatments, vision care, and maternity care, to name just a few.
• How can you lower your premium? – The price of a plan is always crucial in deciding which health insurance plan you’d like to secure. That doesn’t mean that you should always opt for the most affordable option, however. The first way to reduce your premium is to adjust the deductible (the amount you pay before the policy becomes active). Lower premiums and deductibles often go hand-in-hand.
• Are pre-existing conditions included? – Depending on the insurer, some policies may exclude pre-existing conditions in their plans. Plans that cover pre-existing conditions often come with higher premiums or waiting periods. Take your time and be careful with your choice.
• What are my insurance options? – There are a myriad of options out there for you to choose from, based on your specific needs and budgets, which can be time-consuming. What you can do is use a plan comparison tool to compare quotes and multiple insurers in one go.

Which Coverage Should I Buy?

If you primarily reside in your country of birth and occasionally take trips abroad, stick with temporary travel insurance. It will provide all the coverage you need to access emergency health care services during your vacation.

Plus, you will get non-medical benefits such as protection against theft and the ability to recoup costs in the case of travel cancellations.

On the other hand, if you live abroad as an expat or travel frequently, you need constant, running travel insurance, along with an expat-specific international health insurance plan.

A comprehensive plan offers general and emergency coverage abroad, along with administrative support for healthcare needs outside your home country.

Expats on a Group Health Insurance Plan

Many expats are given a healthcare plan as part of their employment package. However, not all of these plans cover medical expenses outside the country of expatriation.

If you travel often or would like protection when returning home to visit friends and family, it’s important to have an individual health insurance plan with worldwide coverage.

Reach Out to Pacific Prime for Impartial Advice!

Still unsure as to whether you need travel insurance or international health insurance? We know that securing the right plan can be daunting and confusing. This is true for those who are unfamiliar with the different insurance jargon and terms and conditions.

Luckily, with over 20 years of experience, our experts can help you navigate the steps and find a suitable plan for your trip abroad. Whether the plan is for you or you require family health insurance for your loved ones, you can contact us to find out more!

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Veerabhatr Sriyananda

Content Writer at Pacific Prime

Veerabhatr is a content writer with over 6 years of experience with a particular penchant for storytelling and marketing, both in print and online. He now works with an experienced team of writers at Pacific Prime, aiming to shed light on the essence and benefits of insurance for companies and individuals by creating engaging, informative content across multiple platforms.

After obtaining his Bachelor’s Degree in Social Sciences, International Relations from Mahidol University International College, Veerabhatr has forged his career as a content writer in the travel, lifestyle, and real estate industries, writing in both English and Thai. He now continues to hone his skills as a writer at Pacific Prime, looking to engage and educate the audience by simplifying insurance.

Writer by day, and a DJ by night, Veerabhatr is a staunch music lover, and listens to all spectrums of genres available. He also loves to drink beer (moderately), eat all types of food, go to the beach, and learn about different cultures across the globe. He is also a die-hard fan of football and motorsports.

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