Insurance for Expats: 6 Things You Must Consider

If you’re looking to secure insurance coverage as a newly minted expat, it’s important to stay informed of how the overall process works in your current country.

Eligibility for public health insurance policies can differ from country to country, and this is especially true for foreign nationals who have recently uprooted themselves from their old country and moved to a new one.

As challenging as it may seem, getting insurance is an important first step to integrating into your host country. The right coverage can help you get out of a financial rut in the event that you get involved in a costly accident.

Without ample coverage, you could find yourself spending thousands of dollars on repairs, hospital bills, and damages made to other parties, potentially wiping your bank account dry.

If you’re keen to learn how to navigate the insurance world as an expat, then you’re in the right place. We’ll give you a rundown of important considerations to consider when getting your first insurance policy out of your home country.

Let’s get started.

Make Repayments and Reputation Building Easier With a Bank Account

There’ll come moments throughout your stay as an expat in your host country when you’ll be asked to present proof of your insurance coverage to various departments and agencies. Think of local authorities, medical providers, or even current and future employers.

An insurance certificate acts as official proof of your financial coverage, helping streamline your relocation and ensuring you’re eligible for medical services and entitlements in your host country.

In order to get an insurance policy in the first place, you’ll need to be able to show proof that you can pay for the monthly repayments. The easiest way to do this is by having a bank account in your host country set up to automatically deduct monthly payments.

For example, if you’re an expat in Australia, opening an account with a major bank can simplify the act of setting up monthly repayments for your insurance policy.

Besides acting as a facilitator for making monthly repayments, having a local bank account also establishes to insurers that you are capable of making smooth payments to them. In some countries, having a domestic bank account is necessary in order to access certain insurance privileges. So be sure to review your host country’s pre-insurance requirements. If having a bank account is needed, then prioritise creating one to streamline the process of paying your premiums later on.

Identify All Insurance Types You Can Get

As an expat, you’ll likely have a different set of insurance policies immediately made available to you. Recognise the ones that you can secure—both domestically and internationally—and weigh the pros and cons of getting the insurance policies for yourself.

Some insurances may be more applicable to you depending on your lifestyle and circumstances, and some options may be completely locked out. In any case, knowing what types are available can help you make a more informed decision to adequately cover yourself when you’re staying in the host country.

Here are some common insurance policies expats may consider getting while they’re residing in an overseas territory:

• Compulsory insurance: Basic government-mandated insurance to cover third-party damages.
• International health insurance: Insurance by an international provider for medical bills that may arise while in an overseas territory.
• Income protection insurance: Replaces part of your income if you’re unable to work due to illness or injury.
• Vehicle insurance: For repairs and replacements for cars or vehicles under the expat’s name.
• Life insurance: Provides financial security for your family in case of unexpected death overseas.
• Travel insurance: For more short-term stays.
• Repatriation insurance: Covers transport costs to your home country in emergencies.

While you don’t need each one of these insurance policies, they’re great to have to ensure your finances stay protected while you’re not in your home country.

Moreover, there are insurance providers that offer comprehensive insurance policies that provide bundled coverage options for expats. They may be worth considering if you want an all-in-one option that’s also easy to manage.

See the Conditions of Your Visa

Long-term, non-permanent residents in most countries may have access to public services and basic amenities that the country provides, but full insurance entitlements are typically limited to permanent residents and citizens.

As such, it’s important for you to know your visa status and the corresponding insurance policy eligibility that comes with it. Your visa type can influence what insurance options are available to you, so knowing your status beforehand can help ensure you’re on the same page with your insurance provider regarding what can be claimed and what’s restricted.

For instance, in many countries, insurance isn’t mandatory. This means that insurance policies aren’t automatically granted to expats by their host government, requiring them to get private health insurance instead.

As many as 43 countries also require both expats and short-term visitors to have health insurance coverage to protect them in the event they need medical intervention in that country. Failure to secure an ample insurance policy may mean a penalty or an entire revocation of your visa.

That said, some insurance conditions differ based on your visa type. In general, expats and working visa holders require a certain amount of health coverage. Be sure to secure that once you’ve settled into your host country as an expat.

Take Note of the Waiting Periods for Claims

If you have a specific health condition and are used to the insurance scheme in your former country covering hospitalisation and prescription medicine, then you should relearn how waiting periods work in your new country.

Some treatments may take a little while longer than you’re used to under a private insurer’s insurance policy. For instance, in Australia, the government has mandated that most general hospital cover waiting periods should stay below 12 months before coverage activates. This means that it can take anywhere between a week to a year to get your financial claim.

However, there are some exceptions; the government has mandated that it should take no more than two months for insurers to process a claim for treatments concerning psychiatric care, rehabilitation or palliative care.

Of course, each country has a different payout scheme policy. In any case, knowing these timelines is crucial to avoid unexpected out-of-pocket costs. So, make it a habit to ask providers about exclusions, pre-existing condition clauses, and required documentation before you finalise your policy.

Investigate Any Reciprocal Agreements From Your Home Country and Host Country

Most nations have healthcare systems that are solely restricted to benefit their citizens. However, there are a few notable exceptions to this rule.

The Australian government has created a reciprocal healthcare agreement that allows citizens of one of 11 countries to benefit from a modified version of their local healthcare program, Medicare.

The countries listed under the Reciprocal Health Care Agreements (RHCA) policy include Belgium, Finland, Italy, Malta, the Netherlands, New Zealand, Norway, the Republic of Ireland, Slovenia, Sweden, and the United Kingdom.

Through this initiative, citizens coming from these countries can gain access to free or reduced-cost health care services while in Australia. That said, it’s essential for expats to enrol on the Medicare program before being eligible to do this perk.

We hope we’ve given you enough insights on things to consider before getting insurance as an expat. We wish you the best in navigating your new country!