Nomadic Shocker: Medical Insurance for Fulltime Travelers and Retirees

As we excitedly plan our nomadic retirement, one crucial aspect threw us a curveball: medical insurance for fulltime travelers. Budgeting for this seemed straightforward, but the reality for nomadic retirees like us is quite different. In this post, we’ll talk about the sticker shock we experienced and explore the the different types of “travel” insurance and discuss the differences and similarities of travel insurance vs medical insurance for fulltime travelers. We’ll also share the alternative solutions we discovered to ensure affordable health coverage for our globe-trotting adventures, helping you navigate this essential step in planning your own mobile retirement!

Medical Insurance for Fulltime Travelers and Retirees

One topic that comes up in the digital nomad world is medical insurance; most countries require some proof of travel medical insurance to stay there and the rare occasion I hear it mentioned the comments have always been about it costing in the $40 to $60 per month range.

During our initial planning process for our mobile retirement had budgeted $250 per month for both of us since most of the nomads are younger than us – I thought, well, if it costs a 40 year old $60 for medical insurance for fulltime travelers then it will probably cost a 60 year old twice that.

This morning I started doing some actual research, getting quotes and comparing coverages. 

Medical Insurance for Fulltime Travelers and Retirees Sticker Shock

HOLY SCHNIKES!!!! The least expensive travel medical insurance plan I found was $894 per month for both of us. That had a $10,000 deductible and no prescription coverage. Adding the prescription plan was over $450 per month. I’m on several meds so that is a thing near and dear to my heart but truly and honestly, if I paid US retail prices for all my prescriptions it would be less than $450 per month; that’s just stupid. 

One of the plans I looked at was over $26,000 per month. PER. MONTH. My current crappy coverage is $1,700 per month with an $8,000 deductible which is already absurd – it’s 90% of our mortgage payment – but at least that includes the prescription benefit that saves me about $1,000 a year.

There has got to be a better solution out there but, wow, the sticker shock I experienced initially was something else. Here’s what we found. (We’ll provide an update regarding our solution in a later post)

Travel Insurance, Travel Medical Insurance and Medical Insurance for Fulltime Travelers and Retirees (aka International Health Insurance)

Understanding the Differences and Similarities

Traveling is an exciting experience, but it’s important to ensure you’re adequately protected against unforeseen events. Three types of insurance that often come into play when traveling are travel insurance, travel medical insurance and international health insurance. Now, travel insurance, travel medical insurance, and international health insurance – these terms get thrown around like free candy at a budget airline, and they all sound kinda similar, right? Don’t be fooled by their name game! While they all can provide coverage during your journeys, they serve different purposes and offer varying levels of protection.

Pretend Scenario: You’re knee-deep in conquering that legendary Thai street food challenge when suddenly, food coma takes on a whole new meaning. Stuck in a foreign hospital with a questionable case of “Pad Thai payback,” medical bills could spiral faster than a rogue tuk-tuk. This is where that “knowing the difference” thing becomes crucial. Having the right insurance can be the difference between “no worries, mate, insurance has got this” and a travel nightmare that would make even the most seasoned explorer sweat bullets. Which insurance help you here?

Why understanding how medical insurance for fulltime Travelers and ‘Travel Insurance’ is not the same!

Here’s why understanding these travel insurance options is your ticket to a stress-free adventure:

• Peace Out, Panic Attacks: Knowing you’re covered can be your chill pill when things go sideways. Focus on getting better, not freaking out about bills.
• Confusion is the Enemy of Fun: Travel disruptions are already annoying. Knowing exactly what your insurance covers saves you time, headaches, and unnecessary drama.
• Your Wallet’s Guardian Angel: The right insurance shields you from unexpected costs – trip cancellations, medical emergencies, lost luggage – all the things that can turn a dream vacation into a financial disaster.

Let’s delve into the differences and similarities between these three types of insurance.

Travel Insurance

Imagine this: You’ve booked that epic European adventure – museums, delicious food, and enough gelato to fuel a small army. But then, whammy! A blizzard grounds all flights, and your dream vacation gets put on hold. Ugh! Talk about a travel bummer.

This is where Travel Insurance comes into play. It’s an insurance policy you can buy that helps you recoup your when travel-related things go sideways during your trip Think of it as a safety net that catches you if your travel plans take a tumble due to unforeseen circumstances. It’s designed to protect your investment in your trip by providing coverage for trip cancellations, delays, lost baggage, emergency evacuations, and more.

What travel insurance covers

Trip Cancellation/Interruption: If your trip gets canceled or interrupted due to unforeseen events like illness, family emergencies, or natural disasters, travel insurance can reimburse you for the non-refundable portions of your trip expenses.

Travel Delays: If your flights are delayed, travel insurance can cover additional expenses like accommodations and meals.

Lost or Delayed Baggage: In case your luggage gets lost or delayed, travel insurance can reimburse you for essential items you need to purchase while waiting for your belongings.

Medical Emergencies: While some travel insurance plans offer basic medical coverage, it’s usually limited. For more comprehensive medical coverage during your travels, you’d likely need separate travel medical insurance (see below).

Emergency Evacuation: If you have a serious medical emergency while traveling and require evacuation to a medical facility or back home, some travel insurance plans may(!) cover the cost.

Things to Consider When Choosing Travel Insurance:

• Trip Cost: Generally, travel insurance costs a percentage of your total trip cost. A longer, more expensive trip will likely have higher insurance costs.
• Your Age and Health: Premiums can be higher for older travelers or those with pre-existing medical conditions.
• Trip Duration: Longer trips may cost more to insure.
• Coverage Needs: Consider the types of situations you want to be financially protected against and choose a plan that offers the right level of coverage.
• Deductible: This is the amount you’ll have to pay out of pocket before your insurance kicks in. A higher deductible typically means a lower premium.
• Exclusions: Read the policy details carefully to understand what events or situations are not covered.

FAQ: If you book your trip using a credit card, is travel insurance included?

Travel insurance coverage with credit cards can be a bit of a mixed bag. Here’s the breakdown:

Some credit cards offer travel insurance benefits as a perk for cardholders. This might include trip cancellation/interruption coverage, travel delay reimbursement, or lost luggage protection.

However, there are a few key things to consider:

• Not all cards offer travel insurance: It depends on the specific card and its rewards program.
• Coverage details vary: The type and amount of coverage can differ significantly between cards. Some might offer basic coverage, while others might provide more comprehensive protection.
• Activation requirements: You might need to meet certain criteria to activate the travel insurance benefits, such as using the card to purchase your flight or booking your trip through a specific travel portal.

Here’s what you can do to find out if your credit card offers travel insurance:

• Review your credit card benefits guide: This document outlines all the perks and coverage associated with your card.
• Check the card issuer’s website: Look for a dedicated section on travel insurance benefits or a FAQ section that clarifies coverage details.
• Contact your credit card issuer directly: They can provide the most accurate and up-to-date information about your specific card’s travel insurance benefits.

Even if your credit card offers some travel insurance, it might not be enough for your needs. Here’s why you might still consider purchasing additional travel insurance:

• Limited coverage: Credit card travel insurance often has lower coverage limits compared to standalone travel insurance policies.
• Specific exclusions: Certain events or activities might be excluded from your credit card’s travel insurance coverage.
• Activation requirements: As mentioned earlier, activating the travel insurance benefits might require specific actions, which could be inconvenient or restrictive.

Travel Medical Insurance

Ok, this time you’re trekking through the awe-inspiring landscapes of Patagonia, feeling like a real-life explorer. But then, bam! A sudden bout of food poisoning lands you flat on your back in a foreign hospital. Yikes! Medical bills abroad can be a real budget-buster, turning your dream adventure into a financial nightmare.

This is where Travel Medical Insurance, also known as travel health insurance, focuses primarily on providing coverage for medical expenses and medical emergencies that occur during your travels.

What the cover

Medical Expenses: Travel medical insurance covers the costs of medical treatment, hospitalization, and doctor visits in case you become ill or injured during your trip.

Emergency Medical Evacuation: In case of a serious medical emergency, travel medical insurance might cover the cost of medical evacuation or repatriation (transporting you back to your home country for treatment).

Accidental death and dismemberment (AD&D): Some plans offer additional coverage for accidental death or permanent disability sustained during your trip.

Repatriation of Remains: If the unfortunate happens and you pass away while traveling, travel medical insurance can cover the cost of transporting your remains back home.

Things to Consider When Choosing Travel Medical Insurance:

• Trip details: The cost of travel medical insurance typically depends on the length and destination of your trip. Traveling to a remote location might require a more comprehensive plan compared to a trip to a developed country with good healthcare facilities.
• Your age and health: Pre-existing medical conditions might affect your eligibility or the cost of travel medical insurance. Be upfront about your health status when applying for a plan.
• Your activities: Are you planning any adventurous activities like skiing, rock climbing, or scuba diving? Make sure your chosen plan covers these activities, as some might have exclusions for extreme sports.
• Coverage limits: Travel medical insurance plans have coverage limits, which is the maximum amount they will pay for each covered expense. Choose a plan with sufficient coverage limits to meet your needs.
• Deductible: A deductible is the amount you’ll need to pay out of pocket before your insurance kicks in. Higher deductibles typically mean lower premiums, so find a balance that fits your budget and risk tolerance.

FAQ: Is travel medical insurance provided f you book your trip using a credit card?

Don’t assume you’re covered for medical emergencies. Here’s a safer approach:

• Review Your Credit Card Benefits: Look for travel medical insurance details in your cardholder materials or the issuer’s website. See if any medical coverage is included, but understand the limitations.
• Consider a Standalone Travel Medical Insurance Policy: For comprehensive medical coverage, especially if you have pre-existing conditions or are planning an adventurous trip, a standalone travel medical insurance policy is the way to go.

Medical Insurance for Fulltime Travelers aka International Health Insurance

So, like us, you’ve decided to ditch the nine-to-five and embark on an extended adventure around the world. Living the dream, right? But wait, like us, we wondered what about healthcare coverage, not just medical emergencies?

This is where International Health Insurance or Medical Insurance for Fulltime Travelers comes in. It’s an insurance policy designed to cover your medical expenses while you’re living or working outside your home country for an extended period, unlike travel medical insurance which is for shorter trips.

Here’s what international health insurance (usually) covers:

• Doctor visits and hospital stays: Just like regular health insurance, it can cover costs associated with doctor consultations, specialist visits, and hospital stays if needed.
• Prescription medications: Coverage for prescribed medications can be crucial, especially if you rely on regular medication management.
• Outpatient care: This might include services like diagnostic tests, lab work, physical therapy, or emergency room visits.
• Maternity care: Some plans offer maternity coverage, but it’s important to check details and exclusions.

Things to Consider When Choosing International Health Insurance or Medical Insurance for Fulltime Travelers:

• Destination and duration: The cost and coverage of your plan will depend on the country you’re moving to and the length of your stay.
• Your age and health: Pre-existing medical conditions might affect your eligibility or the cost of the plan. Be upfront about your health status when applying.
• Coverage level: Choose a plan with a coverage level that meets your needs. Options might range from basic coverage to comprehensive plans that include repatriation (transporting you back home for medical care).
• Deductible and co-pays: Similar to most health insurance plans, international health insurance will likely have deductibles (out-of-pocket costs) and co-pays (fixed amounts you pay for certain services).

Coverage Focus in a Flash

• Travel Insurance: Focuses on financial reimbursement for disruptions to your trip itself, like cancellations, delays, or lost luggage.
• Travel Medical Insurance: Your guardian angel for medical mishaps – covers medical bills, emergencies, and sometimes evacuation if you get sick or injured while traveling.
• International Health Insurance: Your long-term healthcare abroad – provides coverage similar to domestic health insurance, including doctor visits, prescriptions, and even preventive care, for extended stays overseas (covers medical needs, not trip disruptions).

FAQ: Does my health insurance I use at home cover all my medical expenses while traveling?

No, in most cases, your regular health insurance won’t cover all your medical expenses while traveling, especially if you’re venturing outside your home country for extended periods of time. Your health insurance plan is typically designed to cover medical services within a specific region, usually your home country. Ask your insurance provider!

Why Do Some Countries Require Proof of Medical Insurance?

Several countries around the world have recognized the importance of travelers having access to proper medical care during their stay. Requiring proof of medical insurance helps safeguard both visitors and the host country’s healthcare resources. It prevents tourists from becoming a burden on the local healthcare system and ensures that travelers can receive the necessary medical attention without financial strain.

Countries Requiring Proof of Medical Insurance

Here’s a list of countries that currently require travelers to show proof of medical insurance in order to enter or stay:

1. Schengen Area Countries: This group of European countries, including France, Italy, Germany, and Spain, requires visitors to have travel medical insurance with a minimum coverage of €30,000 for medical expenses. This requirement is part of the Schengen Visa application process.
2. Cuba: Travelers visiting Cuba are required to have travel medical insurance that covers medical expenses for the duration of their stay.
3. Ecuador: Proof of travel medical insurance is mandatory for travelers entering Ecuador, including those arriving as tourists or temporary residents.
4. United Arab Emirates (UAE): The UAE, including popular destinations like Dubai and Abu Dhabi, mandates that visitors have valid health insurance that covers medical treatment.
5. Qatar: Qatar requires visitors to have valid health insurance to cover any medical expenses incurred during their stay.
6. Russia: Tourist visa applicants for Russia are often required to present proof of travel medical insurance that covers medical treatment and emergencies.
7. Turkey: While not a strict requirement for all visitors, having travel medical insurance is highly recommended when visiting Turkey.
8. Thailand: Thailand has recently implemented a mandatory health insurance requirement for long-term stay visa holders, aimed at covering potential medical expenses.
9. Saudi Arabia: The Saudi government requires visitors to have valid medical insurance, especially for Hajj and Umrah pilgrimages.

From covering unexpected medical expenses to meeting the entry requirements of certain countries, having proper medical coverage adds a layer of security to your journeys. Always check the specific requirements of your destination before embarking on your adventure, ensuring you have the necessary insurance to fully enjoy your time abroad while prioritizing your health and well-being.

Click here for Resources for Purchasing Travel Insurance

Update – We reached out to an insurance broker who got us a quote that was around $450 per month with a $10k deductible and then dug around some more and found a couple places that offer shorter term medical coverage on a daily rate ranging from $4 to $11 per day for each of us (based on our age group) depending on coverage level and deductible.  The most reasonable combination of coverages for us is $5.11 per day so that’s just over $300 per month; that’s way more palatable and increasing the monthly budget from the $250 I guesstimated just means more giving up a couple restaurant meals a month.