Learn What is a Deductible & How it Lowers Your Global Health Insurance Premiums
Every expat knows that obtaining global healthcare is important when living abroad. Also, many insurance terms can be quite confusing, and one of them that every global citizen living abroad has to consider is what is a deductible they should have for their global medical coverage.
What is a Deductible?
Put simply a deductible is what you pay if there is a claim during a calendar or policy year before the insurance starts to reimburse you. When an expatriate has a deductible, he or she has to come up with the amount of money for your deductible before an insurance claim gets paid in many circumstances. You essentially pay that deductible “out of pocket,” and the insurance company will then pay the rest of the eligible claim up to the value up to the policy limits and also the plan terms and conditions.
How Does a Deductible Work?
When you apply for a global health plan via Expat Financial, one of their providers will give you a choice of deductibles. The lower the deductible, the higher the premium. The bigger the deductible, the higher the premium. When you need to claim, you will be responsible for the initial deductible amount per policy year.
If you submit the claim for reimbursement, the deductible is deducted from your claim. Once you have satisfied your deductible, all other eligible claims will generally be paid at 100% to the policy limit, unless you also have a coinsurance amount.
Are Deductibles per Person or Per Family
Most global medical plan deductibles are per insured person in your family and are per policy year. A group company plan deductible will generally be per the calendar year.
How Large a Deductible Should I Get for a Global Health Plan?
Most global health plans in the market will allow you to choose from a large number of deductibles – from zero to USD 10,000 or the Euro or GBP equivalent. Most expats will choose a deductible of around $37 or $750. Other plans will have a separate deductible for out-patient care. In general, medical evacuation expenses are not subject to the deductible.
Can I Increase My Deductible?
It is usually easy to increase the deductible at your health plan renewal, and the insurers will generally not request medical evidence. Increasing your deductible will lower your premium.
Can I Lower My Deductible?
Most expatriate health insurers will allow their customers to lower their deductible only at the renewal, and the decision will be subject to underwriting approval, which means you have to answer some medical questions. It will also increase your premium.
The bottom line is that there are lots of deductible and coverage choices in the market. It makes sense to explore your global health plan choices with an independent source such as Expat Financial. You can even get a quote and apply online.