Buying Comprehensive Global Health Insurance vs Catastrophic Plans
One of the most important decisions you will make when planning your move or extended stay abroad revolves around international health insurance. You will first need to decide whether you need to purchase comprehensive international private health insurance (hint: the correct answer for everyone is ‘Yes, I need health insurance’). With that decision made, you will then need to choose the right policy for you and any loved ones traveling with you. You want to ensure you have the necessary insurance coverage to protect you and your family when you need it.
Understand the Difference Between Comprehensive and Catastrophic Plans
Many factors differentiate one comprehensive international health insurance policy from another, but a key distinction is whether a plan is comprehensive or catastrophic. This article will describe comprehensive and catastrophic plans to help you make the most critical decisions as you go over the policies being offered.
When you hear the terms ‘catastrophic’ or ‘comprehensive’ in the description or title of a health insurance policy, you are hearing words that describe the scope of coverage that the health insurance policy in question provides. To better understand this, we must define the terms’ comprehensive’ and ‘catastrophic,’ specifically in the context of international insurance plans.
What does the Term ‘Comprehensive International Health Insurance’ Mean?
Comprehensive health insurance is what it says: it offers full coverage for all your health needs. Not only will your comprehensive health insurance policy cover you for doctor’s visits when you are sick, but it will also cover you for many preventive and regular visits to maintain your health.
Comprehensive coverage is especially important for families with young children who require more frequent regular well-baby or well-child visits and screenings, as well as for individuals or families planning to be out of their home country for over a year.
Recommended Comprehensive International Medical Plans
Cigna Global Insurance Plan
- Flexible plans tailored to your needs and budget
- 1.5M+ providers in 200+ countries
- 24/7 multilingual customer support
BCBS Global Solutions Worldwide Premier
- Unlimited annual and lifetime coverage
- Pre-existing conditions covered with prior insurance
- For U.S. citizens abroad or foreign nationals in the U.S.
What Does the Term ‘Catastrophic Health Insurance’ Mean?
Catastrophic health insurance is what it sounds like; it covers you in the event of a catastrophe or, more specifically, in the event that something unexpected happens. For instance, if you are a healthy young person and you get an infection severe enough that it requires a trip to the doctor and a round of antibiotics, your catastrophic policy should cover you. However, if you are looking to have a routine eye exam even though you have no specific concerns, it is unlikely that your catastrophic policy will cover it.
Recommended Catastrophic or Emergency Travel Medical Plans
Single Trip Platinum Travel Insurance
- For U.S. citizens and residents up to age 95
- Includes pregnancy coverage, baggage loss, trip interruption & more
- 24/7/365 service and assistance
Patriot Platinum Travel Insurance
- Maximum limits up to $8,000,000
- IMG pays 100% of medical expenses in-network
- Evacuation due to Natural Disasters & Political Unrest
Comprehensive Global Health Insurance Coverage
Choosing between comprehensive and catastrophic coverage is a crucial decision point when you choose your health insurance policy. However, it is far from the only thing you need to consider in your choice. All policies, whether they offer comprehensive or catastrophic coverage, have different benefits and drawbacks. You must understand what these are before you make your choice.
Comprehensive global medical plans should include:
- Freedom to choose any hospital, clinic, or doctor
- 24 Hour Emergency Assistance and Medical Helpline
- Emergency Evacuation, Repatriation, Hospitalization
- In most cases, Home Country coverage is included
- Choice of GBP, Euro, and USD currencies for payment
Comprehensive plans may also offer additional benefits such as dental, vision, maternity, prescription drugs, and other coverage options. Some of these are included in the base plan. Other times, they are optional add-ons that come with an additional premium. For example, the Cigna Global Medical plan allows you to select and customize various options (such as Wellness, Dental, and Vision) and benefits to design a plan that meets your specific needs.
Example Scenarios
Jim is traveling to the South Pacific. He is young and adventurous, planning to cliff-dive, surf, and take on other adrenaline-filled opportunities that come his way. He knows he wants comprehensive health coverage because he intends to stay for several years.
Jane is in her late fifties. She is also traveling to the same area, but plans to read and sip fruity drinks in a shady spot on the beach. She is going on this trip for a few months to get out of the New England winters that aggravate her emphysema. She is considering purchasing a catastrophic travel insurance policy.
Both Jim and Jane have selected what on the surface seems like the right policies for them. However, they must both be careful when reviewing the details of their prospective policies. Among other things, Jim must ensure that his policy will cover him if he engages in activities the underwriter (the insurance company) considers risky. Jane, on the other hand, must look into whether she will be covered if she develops any problems that the insurance company might consider related to her pre-existing conditions.
Copays and Deductibles for Comprehensive and Catastrophic Health Insurance
Both comprehensive international medical plans and catastrophic insurance policies may have co-pays or deductibles. In most instances, insurance pays for services and supplies as described in the policy paperwork, up to a predetermined, fixed amount. This amount is called the deductible, and it is what the insured must pay before the insurance coverage pays any additional costs. Some policies also have something called co-pays or coinsurance payments. This cost must also be borne by the insured. The co-insurance is either a fixed amount or a percentage of the cost of covered services and supplies. A higher deductible and/or co-pay amount will have the benefit of lowering your premium, but comes with the risk that you will have to pay more out of pocket if you should need to seek treatment.
Typically, the deductibles vary and may be selected at the time of purchase. If you are healthy and relatively young, or if you rarely get sick, and you are willing to take a risk that you will not fall ill or have an accident while traveling, a catastrophic plan with a high deductible might be a suitable option for you. If you live abroad for extended periods or are inclined to visit the doctor more frequently, a comprehensive plan might make more sense. Ensure you are honest with yourself when balancing this risk-versus-reward.
Comprehensive and Catastrophic Health Insurance Premiums
The applicant’s age primarily determines the premiums for both types of plans, as well as the selected deductibles and the required length of coverage. The costs of catastrophic plans are typically lower than those of comprehensive policies. Furthermore, many policies offer coverage that includes or excludes the US; choosing to exclude coverage in the US will significantly lower your premium.
Determine Which Policy is Right for You
While you may be quoted a less-expensive premium for a catastrophic health insurance plan, there are many things to contemplate besides price when looking at this type of policy. Here are some questions to ask yourself before you even consider this type of health insurance policy for your extended travel abroad.
- How many times a year do you get sick? If you make a trip or two to the doctor every year because of illness, you may not benefit from a catastrophic health insurance plan, and anyone with chronic conditions will likely not qualify for most policies.
- What can you afford to cover out of pocket for medical expenses? If you choose a catastrophic policy with a high deductible, you will need to be able to afford that high deductible the moment you experience an illness or an accident. If this isn’t financially feasible, then this insurance policy may not be the right fit for you. (Remember, the cost of medical treatment outside of the US is often lower than inside the US.)
- How broad or flexible do you expect your insurance policy to be? Once you meet the deductible, a catastrophic health insurance plan will cover health care expenses due to emergency illness and accidents as deemed appropriate by the insurance company.
Get Covered Abroad
Whether you choose comprehensive or catastrophic health insurance for your extended travel or life abroad, you must conduct thorough research and make an informed decision. Consider the health status of each insured individual, the activities you plan to engage in, your lifestyle, the duration of your stay abroad, your financial situation, and your level of comfort with risk. Finally, make sure to ask questions and read the fine print so you understand exactly the terms of the policy you select.
