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Travel Insurance vs Medical Insurance: What's the Difference?

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Published on June 10, 2021. EST READ TIME: 3 minutes

You are probably fully aware of the benefits of having a health insurance policy for yourself and your family. However when it comes to travel insurance, getting yourself insured is not just a need, but a mandatory requirement in a lot of countries. If you are planning to visit a foreign country, you may need to get a good travel insurance policy that covers you during your business trip or holiday. But why not just get international health insurance instead, you ask?  After all, both are intended for individuals living outside their country.

The similarities between travel insurance and health insurance have brought about a great deal of confusion among soon to be expatriates. And rightly so – both products are uncannily similar yet purportedly different. Not understanding the difference between either of the two can land you in trouble with unwanted medical expenses.  So, here is a complete breakdown of the two insurance types so you never have to worry about getting either of the two wrong.

What is Travel Insurance?

Travel insurance is intended to cover you for a short period of time during a business trip, holiday or other short visit. This type of insurance covers travellers during a period of time against travel related issues. Some of the issues could be:

·         Misplaced luggage.

·         Emergency medical care during the short trip.

·         Last minute airfare / hotel cancellations.

·         Accident the occurred during your short trip.

·         Lost personal belongings.

Note: Travel insurance will only cover emergency medical treatment that happened during the journey when the incident occurred.

For example: If you fell and broke your front tooth during a flight, you will be entitled to travel insurance. However, if you require tooth extraction which has been plaguing you over an extended period of time (before your travel date) - you will not be eligible for travel insurance.

Travel insurance is also intended to cover you within a specific area, so if you have travel insurance in France, you will be eligible for this type of insurance only in this country.  The idea behind travel insurance is that the insured individual gets better, just enough to return to their home country. It rarely covers long term illnesses and chronic diseases.

What is International Medical Insurance?

Medical insurance on the other hand is intended to provide medical cover over an extended period of time. This type of insurance is designed for students, working professionals, or legally residing expatriates. International health insurance works much the same way that an insurance policy would in your home country. You get coverage for medical emergency care as well as routine care. In some cases, policyholders even have the choice of healthcare facility and type of care received.

International health insurance varies between different providers; however the basic coverage you should expect is:

·         OPD (Outpatient) check-ups.

·         Coverage against long-term or chronic illnesses.

·         Coverage against pre-existing conditions like diabetes and hypertension.

·         Private room with 24/7 nurse on-call.

·         Freedom to choose healthcare provider/s.

In a nutshell, if you plan on relocating to another country for a considerable period of time, then international health insurance is the right coverage for you. Keep in mind, much like travel insurance, health insurance is only valid within a jurisdictional area.

For example, if you are currently living in France and are covered under an insurance plan within the country, you are only covered if you fall ill within the specified area. If you happen to travel to Spain over the weekend and you happened to fall ill, your health insurance would not be valid there. In order to remain covered during the stint of your weekend journey, you would be required to apply for travel insurance before your shirt trip to another country.   

The Difference between Travel and Health Insurance

By now, you should be fairly clear with either of the two types of health insurance policies. If you can clearly make a distinction between the two, knowing how each of them applies would be relatively straightforward.

In a Nutshell

Get travel insurance when travelling to a foreign country over a short period of time. Some examples could be a holiday, business trip or a family visit. Travel insurance generally is valid for up to six months.
Get health insuranceif you plan on staying for an extended period of time. This could be in the form of studying, working. Your health insurance will cover all your medical expenses while living and working in the foreign country. 

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.