Offshore Finance Canada Article
As Published in Offshore Finance Canada Magazine – September/October 1998 Vol. 3, No. 5
International Expatriate Benefit Plans (For Individuals) : A Comprehensive Guide
By David G. Tompkins
What Are International Expatriate Benefit Plans?
While working or living offshore, expatriates are exposed to the same or greater health risks that occur in North America. However, they do not have the benefit of their Canadian Government health care system or U.S. private health care plan. Falling ill in some far-off land is distressing enough without the worry of who is going to pay your health bills. Such medical bills can run into the hundreds of thousands of dollars. Some medical facilities are often reluctant to provide treatment without receiving cash or an ironclad promise to be paid.
Finally, if while traveling from your offshore country you happen to fall ill or injure yourself, you will require medical travel insurance or even evacuation if the facilities are inadequate. Some expatriates can become part of the local government health plan if they satisfy certain residency and immigration requirements. However, as many Canadians know, such government plans, especially in second and third-world countries, are often inadequate, rife with long waiting lists, and cover only basic medical needs.
Why Self-Insurance Is Risky
Of course, many countries that expatriates travel to have no government health plans or, in some cases, not much of a government. Self-insuring is impossible, as even a small illness or injury can bankrupt a person. All the above points to the requirement for expatriates to purchase adequate international expatriate benefit plans and emergency medical evacuation coverage that suits their needs and budget.
Insurance Providers for Expatriates
Several multinational and specialty insurance companies have met the offshore health insurance needs of expatriates with international medical coverage plans. Companies such as BUPA, ASN, SOS, Medex, Aetna, GAIN, and Lloyds have developed varying international expatriate benefit plans from basic to deluxe.
Learn more about top providers of expat insurance plans.
Types of International Expatriate Benefit Plans
Hospital plans and coverage
Most plans will provide in-patient care, which is a technical term for in-hospital treatment. Such expenses include hospital accommodation, surgeons’ and anesthetists’ charges, as well as physicians’ fees. Consultations in radiology, pathology, oncology, and radiotherapy can also be included.
The more enhanced plans include some outpatient charges such as specialist fees, including therapies such as acupuncture, osteopathy, physiotherapy, and homeopathy. Some plans also offer coverage for primary consultations and primary care, including a certain amount of prescribed drugs. Local road ambulance is included in most basic plans. Nursing at home and emergency dentistry are also options.
Comprehensive International Plans
These plans are generally called hospital plans because they usually cover in-hospital treatment only. More comprehensive international expatriate benefit plans are available to cover a wide array of outpatient care in addition to the above. Such expenses include psychiatry, organ transplants, rehabilitation, home nursing, childbirth, home delivery, general practitioners’ consultations, eye & ear specialists, and other specialist services.
Other inclusions are dietetic guidance, vaccinations, lab tests and analysis, x-rays, scans, EKGs, hearing aids, physiotherapy, chiropractic services, osteopathy, and a certain amount of prescribed drugs. Such plans are usually just over double the cost of a hospital plan. Those who are accustomed to using a government-sponsored plan as exists in Canada may want to purchase such a comprehensive plan.
Key Features of International Expatriate Benefit Plans
Flexibility in Coverage Options
In terms of coverage, most plans cover expenses at 100%. Others have the option for the insured to pay 20% of the costs. Most plans include options to add a $500 or $1,000 US deductible, which helps to lower premium costs. All plans have maximum coverage ranging from $500,000 to $1 million annually.
Emergency Travel and Evacuation
The expatriate plans generally have the option to add emergency travel medical and evacuation coverage for an extra fee. This coverage is highly recommended, and the cost is quite reasonable.
Discover the importance of emergency medical evacuation plans
Restrictions and exclusions
All expatriate health plans have some restrictions and exclusions. Some common exclusions are for pre-existing conditions, cosmetic treatment, and standard war or riot events. Maternity and childbirth are excluded in most plans, though some cover normal or complicated deliveries after a waiting period.
Learn about common exclusions in expat insurance.
Costs and Payment Options for Expatriate Insurance
The primary determinant of an expatriate’s premium is age rather than sex. Premiums vary widely based on coverage regions and the inclusion of dependents. Payments can be made using credit cards, checks, or bank debits. A savings of up to 5% can be achieved by paying annually.
Conclusion: Secure Your International Expatriate Benefit Plan
International expatriate benefit plans are fully portable, except when you return to your originating country of citizenship for permanent relocation. Offshore residents know that purchasing health coverage is a vital part of their financial security.
David G. Tompkins, B.A., of the Tompkins Financial Group is a Chartered Life Underwriter (CLU). He has worked in the insurance and financial services business since 1991 and is one of the few international insurance brokers in Canada. David is a member of the Canadian Association of Insurance & Financial Advisors and the CLU Association of Vancouver. He may be reached by telephone at (604) 913-1150.
Note: The policies we offer are not available via TFG Global Insurance Solutions Ltd. or its related web sites to citizens currently residing in the USA.
As published by Offshore Finance Canada – reproduced & posted on web with permission.
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