How to Choose the Right Travel Health Insurance
A Guide to Four Types of Medical Coverage for Travelers
Sep 20, 2009
There are four general policy types, ranging from basic to deluxe international policies. For more general tips on buying a travel health policy, read the related article Travel Health Insurance.
A Basic Policy May Be Enough
Those shopping for travel coverage will find several types or levels of protection. A basic travel medical policy should cover expenses associated with illness or accident for the traveler and his or her spouse and family, if applicable. The policy should cover the same type of expenses as a basic major medical policy: hospital costs, doctors’ fees and prescription drugs. Importantly, a travel policy should also include evacuation insurance.
Shoppers should be able to choose from several coverage amounts, ranging from as low as $35,000 per person to as high as $1 million, and should also have a choice of several deductible amounts.
Basic policies can be further divided into single-trip plans and multiple-trip plans for frequent travelers, which are designed to cover unlimited trips within a certain time period, such as 12 months.
All-inclusive Travel Insurance Covers More
The next level of coverage in travel health insurance is a trip protection policy. These comprehensive plans provide all the hospitalization and office visit coverage that a basic policy would, but they add trip cancellation and interruption insurance, medical evacuation services, baggage protection and other benefits to the mix.
These policies can also include add-ons like emergency cash advances, translation services, access to legal assistance, extra protection for airline accidents and acts of terrorism, and help in recovering lost tickets or passports. These services come at a higher price — but people traveling overseas may well appreciate the peace of mind they provide.
Specialized Insurance for Those Who Travel to Study
Some insurance companies offer special medical policies for Americans studying or conducting academic research abroad and for international students traveling to the United States to study. These policies, designed for adults age 64 or younger, usually offer benefits comparable to a traditional major medical plan, renewable annually as long as the policyholder is eligible and subject to similar deductibles, exclusions and pre-existing condition limitations.
In addition to the familiar benefits, an international study policy will likely include medical evacuation coverage, repatriation (sending home) of remains in the event of a covered person’s death, translation assistance and specialized health and security information related to the country being visited. An interesting benefit of some of these policies is reimbursement for a loved one to travel from the home country to visit a covered person who has been hospitalized while in a foreign country.
These premium services are not for everyone. But most companies that sell travel health insurance offer a wide range of options in an effort to meet the needs of every potential customer, from an individual taking a short business trip to a family going on a month-long adventure in an exotic locale.
Travel Health Coverage for Long-term Visits
A fourth type of travel health policy is a renewable international plan for individuals or families who will be staying in a foreign country for a year or more, such as for an extended job assignment.
These policies are comprehensive, traditional major medical plans, usually providing coverage for hospitalization, surgery, office visits, lab tests and X-rays, physical therapy and prescription drugs.
International plans usually have an annual deductible and a lifetime benefit maximum and pay at different levels for care received from an in-network or out-of-network provider. Those considering such a policy are encouraged to shop around just as they would for their "regular" comprehensive health plan. In fact, anyone who already has family health insurance with a major carrier should check first to find out if they have a program for long-term travel away from home.
As an example, many Blue Cross and Blue Shield plans participate in a global network called the BlueCard® program that offers in-network benefits in 200 countries. Other major carriers have similar international networks.
More to Think About
Because so many different companies sell travel health policies – ranging from traditional insurers to travel agents and credit card companies – travelers should do plenty of “due diligence” before buying. They must do research to ensure the chosen company is reputable and financially sound so they can pay claims in the unlikely event a medical emergency does arise.
And last but not least: Read the fine print of any insurance policy, whether for travel or otherwise. It is always crucial to understand all the provisions of any contract and to know what is and is not covered. With these things in mind, individuals and families can enjoy a carefree trip – whether they’re driving a few hours to see Grandma or flying to a faraway dream vacation.
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