Expat Health Insurance: Is it really necessary?
You’re a young, healthy expat—and hit by the recession. The first thing you can cut to save money is health insurance, right? Wrong!
If you become ill or injured, do you have enough money to cover your health costs in your host country—or repatriation if the problems are severe? Depending on your location and illness or injury, these costs can rise as high as a million dollars. Not many of us have that much money just sitting around, and those of us who do would probably rather spend it on something else.
Many health insurance policies cover travel, as well as multi-nation residence—in other words you don’t have to update your policy if you move to another country. But expats who are struggling with the recession may find these policies too expensive.
Saving on Health Insurance Costs
There are ways to save on health insurance costs while maintaining some protection, so consider these adjustments before you cut the health insurance all together.
- Negotiate health insurance as part of your relocation package.It is unlikely this will have any effect on your salary. Ask for health insurance rather than a gym membership, for instance. Fitness of course is important, and can certainly help keep us healthy, but fitness can be achieved for free.
- Some expats find taking out a local policy is the cheapest option. Read the small print carefully. Will it cover you if you wish to repatriate? Will it cover you if you live less than half the year in the host country? International insurers will cover you wherever you live, but even their minimum policies they may come at a higher cost.
- It may be possible to reduce your insurance costs if you have a medical/physical.
- Start taking out cover when you are young, as the premiums will be lower, and stay lower overall.
- Opt for a higher excess as a gamble that you won’t get ill or injured—but if you do, at least you will have some help with costs. You can upgrade your cover (and decrease your excess) when you have more money to pay the premiums.
- Stay healthy! Eat well, exercise regularly, learn to deal effectively with stress and you will reduce over all health costs both now and in the future.