Comparing Local vs. International Health Insurance for Expats & Digital Nomads: Pros and Cons

Expats and digital nomads face unique challenges when it comes to health insurance. As a digital nomad myself for over 4 years and being an expat for over 6, I've experienced first-hand navigating different countries and healthcare systems.

Since leaving my home country Germany, I've been comparing a lot! As a country with a universal multi-payer healthcare system, choosing the right insurance plan was important to me to ensure I have comprehensive coverage and peace of mind wherever I go globally.

In this article, I'll explore the pros and cons of local and international health insurance options, with some of the leading providers in this space.

Understanding Local Health Insurance

Local health insurance refers to coverage specific to the country you're residing in, for me, that's Australia right now, despite my passport being German. It's important to note that while you're not always obligated to take out private healthcare, doing so can offer additional benefits.

Countries such as the UK, Australia, New Zealand, Germany, Spain, and Portugal have advanced public healthcare systems, allowing patients to receive medical treatment at no cost. However, in countries like the USA, where public healthcare isn't available, private health insurance is a necessity.

Pros of local health insurance:

• Typically more affordable (with costs depending on your age and health status)

• Customized to fit local healthcare systems

• Some countries may require it for visa approval

• Designed to provide coverage for the long term or even lifelong if you stay in the country

Cons of local health insurance:

• Coverage is restricted to specific regions (not worldwide)

• Local healthcare services might not align with your personal needs, depending on the country

• Pre-existing conditions may not be covered or could be expensive to include

• Language barriers could complicate the claims process

• Gaps in coverage may arise when transitioning between countries

Understanding International Health Insurance

International health insurance on the other hand provides coverage across multiple countries or even globally, catering to the mobile lifestyle of expats and digital nomads.

Pros of international health insurance:

• Worldwide coverage across multiple countries

• Usually access to a network of hospitals, clinics, and medical professionals

• Ideal for travellers without a home base or during transition periods before accessing local healthcare systems (e.g. Australian Medicare – it took me 2 years of waiting to get Australian residency, luckily under the stream I applied, I was able to access the local Medicare system already after I submitted my application, not all visa streams are eligible for this, especially when you're in a country more temporarily without the intention to take up residency and keep moving instead)

• Consistent coverage for frequently moving nomads

• Often includes evacuation and repatriation services (help to get back home if you get really sick or hurt abroad)

• Covers chronic conditions

• Flexibility to choose medical providers

• Usually covers pre-existing conditions

• Multilingual support for navigating healthcare systems

Cons of international health insurance:

• Typically comes with a higher price tag

• May involve substantial deductibles or co-pays

• Could include coverage options that aren't relevant to your needs

Cigna Global Insurance: A Closer Look

Cigna Global Insurance provides comprehensive health coverage tailored for expats and digital nomads, ensuring you’re protected no matter where you are. Their plans are designed to accommodate a wide range of needs, offering flexibility and extensive support.

Key Features That Benefit Expats and Digital Nomads:

• Flexible Plans and Coverage Options: Choose between worldwide coverage or worldwide coverage excluding the US, allowing you to tailor your plan based on your travel patterns and location.

• Large Network of Healthcare Providers: Access to a vast network of trusted hospitals, clinics, and medical professionals worldwide, ensuring quality care no matter where you are.

• 24/7 Customer Support in Multiple Languages: Get assistance whenever you need it, with support available around the clock in various languages.

• Telehealth Services: Consult with healthcare professionals remotely, making it easier to get medical advice without needing to visit a clinic in person.

• Wellness Programs: Benefit from wellness programs designed to help you maintain your health and well-being, supporting a balanced lifestyle.

How Cigna Global Addresses the Cons of Typical International Insurance

Cigna Global Insurance effectively tackles common drawbacks of international insurance by offering:

• Customizable Coverage: Unlike some international plans, Cigna allows you to adjust coverage based on your specific needs and circumstances.
• Broad Network Access: Ensures that you have access to a wide range of healthcare providers, reducing the risk of facing limited options.
• Enhanced Support Services: Provides comprehensive support, including multilingual customer service and telehealth options, to navigate any challenges you might encounter.

For more details on how Cigna Global can meet your insurance needs, visit their Global Professionals page.

Things to Consider When Choosing Between Local vs International Insurance

When deciding between local and international health insurance, consider the following factors:

• Length of time spent in one country

• Travel frequency

• Personal health condition and medical history

• Budget considerations

• Specific coverage requirements (e.g., maternity, dental, vision)

• Quality and cost of local healthcare services

Where Travel Insurance Fits In

Travel insurance falls between local and international insurance, designed for shorter trips and offering different types of coverage that is:

• Valid for a certain period or shorter trips

• Inexpensive compared to comprehensive health insurance

• Covers emergency medical treatment, not routine examinations

• Usually covers baggage and cancellations, sometimes electronics and adventure sports also

Common types of travel insurance include:

• Single trip: Typically covers a stay in one other country or region for up to a few months

• Annual or Multi-trip: Covers unlimited travel within a defined region for up to one year

• Family: Multiple policies combined to cover you, your spouse, and your children (under 18)

For digital nomads, products like SafetyWing Nomad Insurance offer a blend of travel and health insurance, covering medical costs and protecting against detrimental expenses in case of sickness or emergency.

In conclusion, the choice between local and international health insurance depends on your specific circumstances as an expat or digital nomad. Consider your travel patterns, health needs, and budget to make the best decision for your situation.

Tips for Maximizing Your Health Insurance as an Expat or Digital Nomad

Whether you choose local or international health insurance, here are some essential tips to make the most of your coverage.

Understanding your policy thoroughly

• Read your policy documents carefully, including the fine print

• Know what is covered, what isn't, and any limitations or exclusions

• Understand the claims process and required documentation

• Be aware of any waiting periods for certain treatments or conditions

Keeping important documents and contact information readily available

As an expat or digital nomad, it's crucial to keep your health-related information organized and easily accessible. I store digital copies of all insurance policy documents in a Dropbox, that I can easily access on mobile, desktop and even when I lose my phone! This could also be a password-protected folder in your cloud storage or a dedicated app for important documents.

Always keep emergency contact numbers handy. Save these in your phone so that in case of an emergency, you or someone helping you should be able to quickly contact your insurance provider.

Maintain an up-to-date list of your current medications, including dosages, as well as any allergies or chronic conditions you have. This information can be crucial in emergencies or when visiting a new healthcare provider in a different country.

Lastly, keep a comprehensive record of your medical history. This should include all vaccinations you've received, past procedures or surgeries, and any significant medical events. Having this information readily available can help healthcare providers give you better, more informed care, especially when you're far from your regular doctors who have known you since you were little.

Staying informed about local healthcare systems

Research how the local system works, whether it's primarily public or private, and what kind of access foreigners have to healthcare services and understand how to access emergency services in your location. For example, it's 911 in the USA, 112 across the EU, and 000 in Australia.

I always believe that being well-prepared helps prevent problems. Make sure to familiarize yourself with local hospitals and clinics, especially those covered by your insurance. This can save you both time and money if you ever need medical care.

Finally, take some time to learn basic medical terminology in the local language. Knowing how to describe common symptoms, body parts, and basic medical conditions can be incredibly helpful when communicating with healthcare providers who might not speak your language fluently. Translation apps are also useful for medical terms.

Utilizing preventive care and wellness benefits

• Take advantage of covered preventive services like annual check-ups and vaccinations

• Use any wellness benefits offered, such as gym memberships or health coaching

• Stay up-to-date with recommended screenings based on your age and risk factors

• Consider telemedicine options for non-emergency consultations, especially when traveling

By following these tips, as an expat or digital nomad, you can ensure you're getting the most value from your health insurance and maintaining good health while living and working abroad.

Comparing Local vs. International Health Insurance – Frequently Asked Questions

Can I have both local and international insurance?

Yes, some expats choose to have both for maximum coverage. Local insurance can cover day-to-day healthcare needs, while international insurance can provide a safety net for more serious issues and coverage when travelling.

Can I use my international health insurance in my home country?

Many international plans offer coverage in your home country, but it's essential to check the specifics of your policy. Some plans may have limitations or reduced coverage for treatment in your country of citizenship.

How do claim processes differ between local and international insurance?

Local insurance claims are usually processed in the local language and according to local healthcare system norms. International insurance often offers multilingual support and may have more standardized processes across countries.

Are there any countries where I'm required to have local insurance?

Yes, some countries require residents (including expats) to have local health insurance as part of their visa or residency requirements. It's important to research the specific requirements of your host country.

What insurance should I choose as a digital nomad?

As a digital nomad, an international health insurance plan is generally recommended due to its global coverage, consistency across countries, and comprehensive benefits including emergency evacuation and multilingual support. However, consider supplementing with travel insurance for short trips or local insurance for extended stays in one country.

Comparing Local vs. International Health Insurance – Final Words

When choosing between local and international health insurance, it's crucial to weigh the pros and cons of each. Local insurance may offer cost-effective, region-specific coverage, but it can have limitations in terms of scope and flexibility. In contrast, international health insurance provides broader coverage, which is especially beneficial for expats and digital nomads who frequently travel or reside in multiple countries.

Ultimately, selecting the right plan depends on your personal needs, including travel frequency, health conditions, and budget. For many expats and digital nomads, Cigna Global Insurance could be an excellent choice, offering comprehensive, flexible coverage tailored to global lifestyles. Always read the fine print before signing up to any provider.

Disclosure: This post is sponsored by Cigna Global, offering comprehensive health insurance plans tailored for expats, digital nomads, and long-term travellers worldwide.