Travel Medical Insurance - Types

Travel Medical Insurance

Travel Medical Insurance plans have been available for travelers for many years. There are many plans underwritten by various insurance companies. Although there are several travel medical plans, one can classify them into two broad categories - Fixed Benefits Plans and Comprehensive Plans.

Travel Medical Insurance - Fixed Benefits Plans

These policies are characterized by various benefit limits for each type of covered medical expense. These benefit limits typically are not the same as the policy maximum.

For example, a policy with a $50,000 maximum limit may feature upto a maximum of $2000 for surgery, upto a maximum of $500 for diagnostic services (X-rays, scans) etc. The maximum amounts for different situations are detailed in the policy brochure.

Typically you are required to pay an initial deductible for each injury or sickness and then the plan pays for the rest of the covered expenses. You will be responsible for all charges in excess of the fixed benefits offered for each type of medical service.

There is no network of hospitals and doctors; you can go to anybody of your choice.

Scheduled Benefits Plans have the lowest premiums, but the consumer must be aware that the benefits offered are relatively limited as compared to the Comprehensive Coverage Plans.

Examples of Fixed Benefits plans include 'Inbound Immigrant', 'Inbound USA' and 'Visitors Care'.

Travel Medical Insurance - Comprehensive Plans

These policies typically do not have benefit limits based on the type of medical expense. Usually benefits for covered medical expenses go all the way upto the policy maximum (less deductible and co-insurance).

Typically for all covered medical expenses during the policy period the insured pays the deductible plus 20% of the first $5,000; and then the plan pays 100% of the eligible medical expenses upto the policy maximun.

The details for each policy such as the policy maximum, medical expense eligibility etc. are listed in the policy brochure.

Comprehensive typically recommend or require you to use the hospitals and doctors in the network. The advantage of using hospitals and doctors include minimizing your co-insurance amounts as hospitals/doctors bill at a pre-negotiated discounted rate.

Comprehensive Coverage Plans have relatively higher premiums, but in turn offer better benefits than the Scheduled Benefits Plans.

Examples of Comprehensive coverage plans include 'Diplomat America', 'Diplomat Long Term', 'Visit USA Healthcare', 'WorldMed Long Term', 'Atlas America', 'Liaison International' and 'Patriot America'.

Travel Medical Insurance - Things to Consider

• Plan Type: Fixed benefits vs. Comprehensive
• Maximum Coverage Type: 'Plan Life' vs. 'Per Incident'
• Deductible Type: 'Plan Life' vs. 'Per Incident
• Shortest Initial Policy Period: Some policies require you to purchase a certain minimum time period (i.e. 7 days, 1 month, 3 months etc.) to start the policy. Make sure the shortest initial coverage period for the plan is less than the your desired period of coverage. Most plans that require 3 month up-front purchase will permit monthly renewals after the initial 3 month purchase
• Renewal Feature: If you are not certain about your return date, then consider a plan that supports renewals. The advantage of renewing an existing policy over purchasing a fresh one after the expiry of the first one include, no fresh co-insurance/deductibles and illness/injuries incurred during the first period of coverage not being classified as pre-existing conditions for the extendsion.
• Good network of hospitals in your neighborhood: Each plan uses a unique network of hospitals and doctors so it helps to make there is good number of hospitals close to the place where you will be staying in USA.

Travel Medical Insurance Tools