What’s the Difference Between Private Medical Insurance and Travel Insurance?

Roman Danaev

19 December 2024

Deciding between international health insurance and travel insurance is a bit confusing, especially if you’ve never had to think about it before. They’re both designed for people going abroad, but they’re not the same. If you choose the wrong one, it could leave you stuck with some pretty substantial medical bills.

So, what’s the difference?

Is Travel Insurance the Same as Health Insurance?

Even though both travel insurance and health insurance offer important financial protection, they’re not the same. Travel insurance covers some medical costs, but its main focus is on travel-related issues. For more comprehensive care, you’ll need your health insurance from home.

If you fall ill or get injured while travelling abroad, your health insurance might help cover the costs, but only if you’re properly insured. Without a health plan, you’ll be responsible for the expenses. Even minor issues, like a sprained ankle, can lead to expensive doctor visits or emergency medical expenses. That’s why it’s important to know exactly what your travel insurance covers. Be sure to check if activities like scuba diving or hang gliding are included, and remember about exclusions — unless you arrange for pre-existing conditions cover at an additional cost.

Many travel insurance policies also have limits on how much they’ll pay out per trip or incident. If you think you might hit those limits, it’s a good idea to consider extra medical coverage to avoid unexpected costs.

What Is International Health Insurance?

International health insurance (or expatriate health insurance) is designed for those living abroad or working in a foreign country for a year or more. It covers both everyday healthcare needs and medical emergencies, so you can use private medical facilities instead of public ones. Sometimes, it’s a personal choice, but some places require it bylocal law, especially if it’s part of the visa application process.

International health insurance is meant for:

• Individuals and families relocating overseas
• People planning to retire abroad
• Those moving abroad to study, volunteer, or work long-term
• Frequent business travellers
• International companies

A typical international health insurance plan covers treatment across several countries within your region, and you can add family members, like your partner and children, to the policy so they enjoy the same coverage.

What Is Travel Insurance?

Travel insurance is meant for short trips abroad that last anywhere from a few days to a few months. It covers trip interruptions like flight cancellations, early returns, lost luggage, missed connections, and delays. For medical care, travel insurance generally provides emergency treatment, enough to get you stable so you can return to your home country for any further care. It doesn’t cover private hospitals (unless advised by healthcare professionals), so you would rely on local public healthcare.

Travel insurance is for:

• Family or couple vacations
• Solo or group trips
• Work trips
• Expeditions and tours
• Visiting loved ones
• Travel for urgent family matters

Keep in mind that travel insurance isn’t designed for long-term medical treatment while abroad — it’s there to help with short-term emergencies, not ongoing care.

The Difference Between International Health Insurance and Travel Insurance

Let’s compare international medical insurance and travel medical insurance across a few key areas:

Nature of Coverage

Travel insurance provides protection for unexpected events that happen during your trip. It’s more reactive and offers help for situations that arise unexpectedly. International health insurance tends to be more proactive, as it covers a wide array of health services, from routine check-ups to ongoing treatments. It offers a more complete safety net for your overall well-being.

Trip Duration

If you’re travelling for less than six months, travel insurance is the way to go. On shorter trips, you’re more likely to deal with things like lost documents, missing luggage, or cancellations, so travel insurance will be enough to cover those situations. For longer stays, international health insurance is the better choice.

Location

International health insurance cover is the smarter choice when you’re heading far from home. If a medical emergency happens, you might not be able to return quickly or cover the costs of care abroad. Travel insurance, however, tends to be less affected by where you are.

Costs Incurred

Travel insurance is more affordable because it covers only emergency medical treatment and some travel-related issues. International health insurance, on the other hand, costs more but offers broader coverage, including long-term care and wellness services, to protect you for a wider range of health needs.

Insurance Coverage

A travel insurance policy covers specific, time-sensitive situations related to travel itself. Its focus is on managing risks that could disrupt your trip with a limited duration of coverage. International health insurance includes a wider range of services, from general health maintenance to serious medical conditions. So, such long-term protection guarantees that you have continuous access to healthcare services, regardless of your location.

Claims Process

Travel insurance involves a quicker, more streamlined procedure. Because it deals with shorter-term issues, you can submit claims online or over the phone, with relatively fast resolutions.

Claims under an international health insurance policy tend to be more detailed and can require more documentation, particularly if you’re receiving ongoing or specialised treatment. The process may involve multiple steps, including submitting medical records and working with healthcare providers to find proper coverage. But to be fair, claiming processes vary greatly depending on the insurer.

Do I Need Travel Insurance Cover If I Have a Health Insurance Policy?

Private health insurance covers many things, but there are certain benefits that travel insurance offers that aren’t included in your regular plan. For example, if you need to be airlifted to a hospital or have a nurse travel abroad with you, those costs can be very high without travel insurance. Having both types of coverage is a good idea, but it really depends on your needs and budget.

In uncertain travel situations, it’s worth considering both for extra peace of mind. It’s better to be fully protected than to risk unexpected costs when abroad.

When to Choose Health Insurance vs. Travel Insurance

If you’re going on a short-term trip (e.g., a business trip for a week), travel insurance is usually enough. However, if you’re planning to stay abroad for a longer time — whether for work, living, or adventure — international health insurance is a better choice. With international coverage, you get access to multilingual support, quick medical advice, and a team of experts ready to help with anything from finding a local doctor to offering guidance on treatments and tips for staying healthy while travelling.

If you think you might need extra care while abroad, it’s a good idea to consider international health insurance. This is especially true if you have a pre-existing condition.

Final Words on Travel Insurance Plans and International Health Insurance Policies

International health insurance is a better choice for people staying abroad for a prolonged period — it offers more extensive benefits than travel insurance, which is meant for shorter trips.

When considering either international health insurance or travel insurance, keep in mind that not all providers offer the same coverage. What one company covers, another might not, and there could be limits on certain benefits. You should make sure the policy meets your needs and compare different plans to get the right level of coverage for your travel plans and healthcare requirements.