We are often asked to explain the difference between a TRAVEL INSURANCE and an EXPAT HEALTH INSURANCE policy, also known as an INTERNATIONAL MEDICAL INSURANCE plan (IMI)or PRIVATE MEDICAL INSURANCE plan (PMI).
These policies can also be set up as a group plan where individuals are added and deleted from the policy. This usually happens when they either join and leave their company or upon reaching a certain ranking within that company.
If you have been in Asia long enough, you would have seen the regular pleads for financial assistance on social media, and you would undoubtedly have heard of people that cannot get back home because their travel insurance will not cover something that has happened whilst traveling overseas. This is often because their travel policy limits the period of time between trips outside of their home country usually to a maximum of 90 days.
Hospital bills can be expensive even in Indonesia. Your credit card limit may not be sufficient, and you certainly don not want the burden of a large debt or being declined medical care when you need it most. Some complex situations cannot be treated within Indonesia and it would be preferred to have this treatment done overseas; this often can lead to a medical emergency evacuation or a medical transfer to another hospital in another country that has access to the medical equipment and expertise required. It is imperative that your policy includes the emergency medical evacuation cover.
Travel insurance does not cover everything you think it might.
Travel insurance is great for protecting yourself against trip cancellations, lost luggage, etc. but when it comes to covering accidents and illness, depending on your circumstances, you might find the benefits severely lacking.
Many travel policies do not cover existing illnesses, flare-ups of chronic illnesses, or even the odd ride on a motorcycle, moped or scooter (even if you are licensed and wearing a helmet). For the odd trip, if you do not have existing medical conditions, that is all well and good.
If you are traveling for a living, frequently traveling for work, or residing outside of your home country (even if it is on a social/business visa as many expats in Indonesia do) you need to consider investing in a quality International Health Insurance policy now!
Assuming you buy an Expat Health Insurance policy before you fall ill, it will usually cover chronic illness, scuba diving, mountain climbing, motorbike riding (when licensed and with a helmet!) and so on. Unfortunately, most insurance companies will not cover pre-existing medical conditions, so the best time to buy your policy is always before you get any medical conditions. Otherwise, you would be looking at a loading or an exclusion.
Consider this policy as a long-term investment in both your health and finances.
Take the time out now to check the policy wording on your insurance policy or refer the details of your current policy to one of our qualified independent insurance advisors, and let us do the work for you! While we are checking over your policy wording, we can also do a comparison of costs and benefits that maybe more suitable for your needs and make the necessary recommendations.
How to get Cheap Expat Health Insurance?
Keeping your premiums to a minimum can often mean reviewing your actual needs. Too often, people buy their policy to cover their low-cost routine medical expenses, when in fact, these costs could be better self-insured. Removing the low-cost routine medical expense cover from your policy and increasing the top end benefits is not always more expensive, it just depends on the design of your policy and how this has been set up.
Often, a better choice is to select a comprehensive policy with an annual limit exceeding US $1m that include essential cancer treatment. Cancer treatment is frequently the most expensive claims paid by expat medical insurance companies; these claims can be hundreds of thousands of dollars for the vital treatment. Many policies will restrict access to treatments or completely deny claims because the benefits are not sufficient.
By removing non-essential benefits, policyholders save hundreds if not thousands of dollars on their annual premiums. Another little-known fact is, that if you opt to include a voluntary claim deductible (also known as an Excess) on your policy, this can significantly reduce the annual premiums of your expat insurance policy. But make certain your policy includes emergency assistance benefits –such as medical evacuations–, repatriations and direct billing for hospitalisation costs. If you do not have the direct billing service, you can be forced to pay out large bills directly to the hospital and forced to wait for your insurance company to approve your claims to reimburse these costs. Many people often are denied treatment because they cannot finance their treatment while waiting for the reimbursement!
A WARNING FOR EXPAT EMPLOYERS IN INDONESIA
If you are sending your employees overseas on a regular basis and relying on a group travel insurance policy to cover any medical costs that arise, you need to ensure it covers pre-existing conditions (including congenital conditions found later in life) and flare-ups of chronic conditions. The majority of policies will likely exclude this extent of cover.
You probably do not know what illnesses your staff have, which leaves you and your employees exposed if your travel policy does not cover all things medical. You might consider an International Health Insurance plan for your key people and staff that travel the most.
Safe travels and stay safe!