With over 20 years of experience providing financial services to expatriates in Asia, we’ve seen firsthand how unexpected health events can derail even the most carefully planned future. Few things are more devastating than watching a lifetime of savings disappear at lightning speed. That’s why protecting your wealth with a medical insurance policy suited to your needs is just as important as building it.
Expatriate medical insurance
There are several weapons in the expatriate wealth protection armoury but in this article, we take a closer look at medical insurance.
Over the years, our consultants have unfortunately witnessed lives turned upside down and families blindsided by an unforeseen accident or illness. Financial plans that seemed rock solid can be derailed frighteningly fast in the face of costly medical treatment.
This can happen even if medical insurance is in place. Too many people take out policies that don’t meet their needs because they have made one of these common mistakes.
Opting for the cheapest policy
There are times when compromise makes sense and times when it doesn’t. When it comes to health, we believe there’s no room for compromise—especially regarding medical insurance for expats in Asia. Without the safety net of state-funded healthcare that some may be accustomed to in their home country, securing reliable coverage is essential.
It can be tempting to save a few dollars by going for the cheapest policy you can find but all too often, it is a false economy.
Take the case of James, a 32-year-old British expat living in Cambodia. Young and in good health, he never visited the doctor and assumed that he would be fine with the cheapest health insurance plan available. It covered only basic outpatient visits and had a low annual coverage limit but James felt this would be sufficient for his needs.
A year after his arrival, James was involved in a motorbike accident, suffering multiple fractures and requiring surgery. His medical bills, including emergency treatment, surgery, and post-operative care, totalled $25,000. However, his low-cost insurance policy had a cap of $10,000 for inpatient care, leaving him to cover the remaining $15,000 out of pocket.
Choosing a local policy over an international one
While it is true that a local health insurance policy will almost certainly be less expensive than an international one, it’s not a good choice for most expatriates for the following reasons:
- Coverage is limited – Local insurance policies often provide coverage only within the country where they were purchased. If you travel frequently or move to another country, you may find yourself uninsured or need to start over with a new policy.
- Quality of care – Many local policies restrict you to public healthcare systems or a limited network of hospitals. International policies typically offer access to a greater number of hospitals ensuring that you can afford the highest quality of care available.
- Lack of portability – If you relocate to another country, a local policy usually can’t be transferred, forcing you to go through the process of getting new coverage, possibly with higher premiums or exclusions for pre-existing conditions.
- Lower coverage limits – Local policies may have lower payout limits, which can be problematic if you need expensive treatment such as major surgery or cancer care. International policies typically have higher limits and broader benefits.
- Language and bureaucracy issues – Local insurers may operate only in the local language, making claims and customer support difficult for non-native speakers. Most expats feel more comfortable with the multilingual support and streamlined claims processes offered by international insurance companies.
- Evacuation and repatriation gaps – Local policies are unlikely to cover medical evacuation or repatriation. In the case of serious illness or injury expatriates often wish to return home or seek treatment in another country so it’s definitely worth checking this is covered on your policy.
Generally, international health insurance plans provide more flexibility and better coverage than local ones and are better suited to the needs of the majority of expatriates, ensuring peace of mind.
Help with finding the right expatriate medical insurance
As we have seen, getting medical insurance is not just a box-ticking exercise for expatriates. Making an uninformed choice can have major financial repercussions if things go wrong.
Infinity is here to help you find the right coverage for your needs at the right price. We have partnerships with all the major international health insurance providers but are tied to none so we can offer impartial advice and compare different policies to find one that offers the comprehensive protection for you and your family that you require.
Talk to your Infinity financial adviser about your health insurance requirements or book a call to be introduced to an adviser that talks your language!
A leading provider of expat financial services and wealth management services across Asia.
