There a many varieties of health insurance policies, making sure everyone gets what they want.
It should come as no surprise to find out that in addition to the health insurance policies you can get in the U.S.A., that there are also options to buy locally and globally. You may be wondering just what the difference is between a local policy and a global policy, since insurance is just insurance, right? Wrong.
There are different kinds of insurance locally and for travel abroad, and the reason for that is the differing needs for various types of coverage in other areas of the country and globally. Insurance is like your neighbor —— the same as you in some respects, but different in others, and so no one health insurance policy would meet and cover both individuals wants and needs.
Additionally, if you spend time traveling to far flung locations, you want to have global insurance that covers you for any medical care needed in another country. Of interest is an apparent trend in which insurers are also scoping out plans where medical tourism plays a part in the choice of coverage available to travelers.
Concerned about plan portability? Choosing a global plan may be best if you are considering making a move. If you have a global health insurance plan, you may only need to file a change of address form, and not have to take out a new policy. Check this out with your insurance agent, as this may change from country to country. Having local health insurance does mean having to take out a new policy in your new location.
While geographical location is the main difference between local and global policies, there are some differences relating to how long a company will renew coverage. In many cases, global and local medical insurance has a cut off limit of 65. However, there are some insurers who allow individuals up to the age of 80 to take out a policy. In general, many global plans guarantee renewability for as long as the customer wants.
In terms of premium calculations, global and locally-based insurers use different systems to assess and adjust them on a yearly basis. Local insurers usually figure your premiums out based on your claims history, often referred to as the experienced rate. Global insurers aim for community adjusted ratings, which factor in everyone’s age, the plan’s growth history and what medical inflation is forecast to be for the following year.
Just be aware that there are differences in the plans you may choose, depending on what you need. Always ask questions and don’t buy the first policy you see. Health insurance is about getting what you need to cover you when you need it. No sense buying a cheap policy that will not cover your medical expenses later.