Comparing Types of Health Insurance

What’s the difference between global health insurance, local health insurance and travel insurance?

The difference between global health insurance (also known as international health insurance), local health insurance and travel insurance policies can be confusing for expats and frequent travellers. But, having the wrong cover might leave you with unexpected medical expenses.

In this article, we’ll look at the pros and cons of each type of insurance to help you make an informed decision.

So, what is the difference between global health insurance, local health insurance and travel insurance?

High-quality private healthcare insurance designed especially for expats. It can cover you and your family globally, with added extras like emergency medical evacuation insurance.

Health insurance taken out through a local supplier in your new home country, it covers you and your family for healthcare in one country while living abroad.

Designed for holidays and short trips to one other country, it protects both you and your possessions, with extra cover for lost and stolen baggage and cancellations.

What is global health insurance?

Global health insurance gives you access to private healthcare in multiple (or even all) countries.

It’s great for people who live and work abroad, for people who spend more than six months of the year travelling, and for people who frequently require cover in more than one country. You can also cover your partner and children in the same policy.

With global health insurance, not only do you get the same level of cover as you would with local health insurance, you’ll also find some policies include unique benefits for expats.

These benefits can include emergency medical evacuations (Medevacs), a 24-hour emergency assistance helpline, and cover for repatriation. Some providers also give their members access to a global network of hospitals and medical facilities. This makes it much easier to find high-quality treatment in foreign countries.

What is emergency medical evacuation?

Find out more about emergency medevac or repatriation insurance

What is local health insurance?

Local health insurance (also known as domestic health insurance) gives you cover for private healthcare in a single country.

Your level of cover depends on the plan you purchase. People who want cover only for serious health risks will typically buy an inpatient plan, which covers them if they need hospital admission.

People who expect to visit their doctor or local clinic regularly will typically purchase a comprehensive plan, which covers them for regular outpatient treatments and visits. And, of course, health insurance means different things in different countries:

Countries like the UK, New Zealand, Italy, Spain and Portugal have highly developed public healthcare systems. With these systems, patients can access medical treatment free of charge. As a taxpayer in these countries, you will pay a national insurance contribution, which helps fund the public healthcare system. If public healthcare is available for expats in your country, you are not obligated to take out private healthcare, but you may like to do so anyway to enjoy the extra benefits it has to offer.
In countries like the USA, where there’s no public healthcare system, you’ll need private health insurance. It’s very important to take out private healthcare, as the cost of medical treatment can be astronomically high otherwise. Many international health insurance providers offer special packages for countries like the USA, which is why you may find cover to be more expensive here than in other countries.
Some countries such as France have something in between these two models, combining private medical insurance with public healthcare. This means you might have to pay a personal premium in return for access to state healthcare services.

Private medical treatment costs abroad can vary significantly

We look at how much medical treatment costs abroad

What is travel insurance?

Travel insurance is intended for people making short visits to another country. Not only does it cover your health, it will also protect you against many things that can go wrong on a holiday or a work trip, such as:

Lost, stolen or misplaced baggage
Flight delays or cancellations
Problems with your accommodation
Legal costs

When it comes to insuring your health, travel insurance is usually very comprehensive. A good travel insurance policy will cover all of your emergency medical bills (minus pre-existing conditions), and may include cover for emergency medical evacuations and repatriation.

If you intend to take part in winter or adventure sports, there are specialist policies to cover you for these too.

When it comes to taking out travel insurance, you will find a range of options to cover you for certain lengths of time:

Single trip – typically covers you for a stay in one other country or region for a period of up to one month
Annual or Multi-trip – covers you for unlimited travel within a defined region for a period of up to one year
Backpacker – covers you for unlimited travel for a defined time period, with additional insurance to cover risky activities
Family – multiple policies wrapped up in one to cover you, your spouse and your children

You may also find travel insurance policies that cover you for travel to specific areas, such as worldwide, Europe-wide and American packages.

If you’re only travelling abroad for a short period of time, travel insurance will probably be best for you

Global health insurance vs travel insurance

Now that we’ve covered the basics of all three, let’s dive into the differences between global health insurance and travel insurance. It’s a question we get asked frequently, so we want to make it clear as possible by explaining what is and what isn’t covered with each:

	What it can cover	What it doesn’t cover
International health insurance	Treatment in multiple countries	Cancellations & delays
	Routine outpatient treatment	Luggage
	Hospitalisation	Belongings
	Elective medical treatment
	Maternity cover
	Psychiatric cover
	Emergency medical evacuation if the treatment you need is unavailable locally
Travel insurance	Emergency medical treatment	Long trips abroad
	Repatriation in the event of serious & unforeseen illness or an accident	Elective medical treatment
	Lost or damaged luggage, travel documents & personal belongings
	Cancelled or delayed trips
	Accommodation cancellations

International health insurance, local health insurance and travel insurance each have their own pros and cons, which begs the question…

What are the advantages and disadvantages of each type of health insurance?

	Advantages	Disadvantages
Global health insurance	With cover designed exclusively for expats, you get access to the highest quality healthcare while living abroad.	Good quality comes with a higher price, so you may end up paying more.
	Depending on your coverage zone, you can enjoy coverage in multiple countries or even worldwide, negating the need for travel insurance.
	Customer service matters: providers tend to offer personalised service, are more likely to speak your native language, and offer global expertise.
Local health insurance	Providers have plenty of expertise in their local market.	Providers tend to work in their local language, making it hard to understand policy wording.
	Being so connected to the local market means local health insurance tends to be much cheaper.	Your plan will typically only cover you for one country, meaning you’ll still need travel insurance when you go to another country.
		Depending on the country you’re living in and the type of cover you choose, the quality of healthcare may not be what you’re expecting.
Travel insurance	Easy, flexible packages designed especially for travellers – whether they’re on a single holiday, or going away multiple times a year.	Timeframes are limited, and may only cover you for up to one month – not appropriate for expats looking to move abroad permanently.
	Not only protects your health, also covers your baggage, and protects against cancellations.	If something goes wrong, you may discover there is no guarantee of the quality healthcare you can receive.
	Tends to be very affordable – even more-so if you take out annual or multi-trip policies.	Many policies will only cover you for medical emergencies – routine visits to medical facilities will need to paid for from your own pocket.

Let’s break the three types of policy down a bit further to help you pick the right one to suit your needs.

Which policy is the best for expats living abroad?

Local health insurance

In many cases, local health insurance will be the cheapest option. But local health insurance policies may only offer the bare minimum level of care, and may not include special benefits for expats.

Local health insurance providers tend to work in their local language, so customer service, policy wording and the claims process may be in a foreign language.
Local health insurance policies may only offer treatment in public hospitals and clinics. The quality of public healthcare in some countries may be lower than you’re comfortable with.
Local health insurance may only cover you in one country at a time.

Travel insurance

Travel insurance is designed for people taking holidays or business trips. It offers comprehensive medical cover – plus cover for lost or stolen baggage and cancellations – but is typically intended for short periods, usually up to one month.

Travel insurance is the perfect solution for holidaymakers, but may not be suitable for expats looking to move abroad. Healthcare cover tends to be for emergencies only, so routine medical visits won’t be covered.
Travel insurance can’t offer the full suite of services other forms of insurance can, such as access to help and support while you are living abroad.
If you do require emergency medical treatment, there is no guarantee of the quality of healthcare you’ll be covered for.

Global health insurance

International health insurance policies are tailor-made for expats who want not only the best quality medical care, but also great customer service.

With international medical insurance, expats can access higher-quality medical care and enjoy perks designed especially for people living abroad. The quality of service will also be tailored to your exact needs.

Global health insurance gives you access to high-quality private medical facilities. Many providers have their own hand-picked networks of high-quality medical facilities, which they can help to connect you with while you’re living abroad.
With global health insurance, you’ll be connected to policy experts and doctors who speak your native language. It’s easy to get help and advice about your policy.
International health insurance covers you for an entire region or worldwide, giving you access to treatment in multiple countries.
An international plan may also cover you for medical treatment in your home country. This gives you the option to return home for elective medical treatment.

Think you might need global health insurance but confused with so many options?

Take a look at our full guide on how to choose the best health insurance for expats

So, which should I choose?

Make sure you do your research to pick the right product for your circumstances. If you’re only travelling abroad for a short period, travel insurance will probably be best for you.

If you’ll be living or working abroad for an extended period, and you want to ensure you have the best cover for any medical treatment, with special extras designed for expats, then local insurance or global health insurance may be more appropriate.

We all know insurance can be confusing, and it’s difficult to tell sometimes what insurance products cover you for what eventualities. Making sure you’re fully informed is really important. That’s one of the good things about being a member with William Russell — we want to make sure you can make informed choices about your cover, health, and well-being.

Joe Holden

Relationship Manager, William Russell

Is there anything else I need to know?

We look at answers to some common questions about the difference between international health insurance, local health insurance and travel insurance:

What should I look for in the small print?

Regardless of which product you decide to purchase, you should always make sure that you fully understand the benefits, coverage, and terms & conditions.

For instance, you’ll need to know if there are limits on what the insurer will pay. Some insurance policies have a maximum limit. Also, depending on your level of coverage, you may not be entitled to certain types of treatment.

You should also check how much you will need to pay as an excess when making a claim. You will have the option to set your own excess when taking out a policy. A higher excess will mean lower monthly premiums, but make sure you can pay it when the time comes.

You also need to check out the geographical limits of the cover you purchase. Some policies are worldwide, some exclude cover in the USA, and others offer only regional cover.

Am I entitled to subsidised healthcare where I’m living?

This depends on what country you’re living in, as well as your personal circumstances. If, for example, you’re paying national insurance contributions in Spain, then you may be entitled to join the state-run healthcare system.

In other countries, you may have no access to free or subsidised public healthcare unless you have finalised your permanent residency and started paying taxes.

If you want to check whether you qualify for state healthcare in another country, try the NHS’s country-by-country guide.

Find out more about universal healthcare

What’s the difference between international health insurance and travel insurance?

These two products are often confused. Some travel insurance products include cover for private medical treatment, while international health policies may come with optional travel insurance.

It’s important to stress that they’re two different kinds of insurance, designed for two different purposes. While most international health insurance policies will cover you when travelling, you may want to look into getting both products – for instance, if you need cover for your luggage.

Can I get long-term travel insurance?

Yes, many travel insurance providers offer yearly packages. These are designed with frequent flyers in mind. They offer cover for multiple trips abroad in a year, although some exclusions may apply. For instance, you may not be covered in certain countries, and you may not be able to access certain types of treatment.

You will also not be covered while you are in your home country. If you are an expat living abroad, you may not be able to benefit from long-term travel insurance while in your usual home country.

Because travel insurance covers much more than just emergency medical care, you may find that the price for yearly coverage is higher than international health insurance.

Wherever you go, go with total peace of mind

At William Russell, we have over 30 years’ experience of helping expatriates move abroad and settle into their new lives overseas by providing world-class international health insurance.

Joe Holden
Relationship Manager

If you’re ready to see prices for health insurance, click on ‘Get a Quote’ below to head on over to our online quote tool.

We’ll ask you a few details (your age, your location), and then we’ll show you prices – it only takes a few minutes!

A couple of days after you’ve received you quote, Joe will email or call you to find out how we can help you further. Joe won’t bug you, and you can opt out at any time.

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Local vs. travel vs. global health insurance: the differences

Further reading