Difference Between Travel Insurance and International Health Insurance
3 min read
・Sep 17, 2024
Sarah was planning a two-week vacation to Australia and needed to buy insurance. Unsure whether to choose travel or international health insurance, she sought advice from her friend Anya.
Anya recommended travel insurance for Sarah’s short trip, explaining it covers trip-related issues like cancellations, lost luggage, and emergency medical expenses. Anya also pointed out that if Sarah were moving to Australia for work, she would need international health insurance, which offers comprehensive medical coverage for long-term stays.
This shows that the type of insurance you choose depends on the nature and duration of your trip. So, how do you decide which insurance for abroad is right for you? This article explains what travel insurance and international health insurance are, what they cover, and how they differ.
What is Travel Insurance?
Travel insurance is designed to offer short-term coverage for travel-related incidents. It ensures that you are financially protected during your trips, whether a two-week vacation or a month-long journey. Travel insurance provides temporary coverage and is specifically tailored for the duration of your travel.
What is International Health Insurance?
International health insurance provides comprehensive long-term health coverage for expatriates and long-term residents abroad. It is ideal for individuals planning to live or work overseas for an extended period. This type of insurance offers extensive medical coverage, guaranteeing access to quality healthcare services anywhere in the world.
What Does Travel Insurance Cover?
Travel insurance covers various travel-related risks so your trip goes as smoothly as possible. Here’s what it covers:
1. Trip Cancellations and Interruptions
Travel Insurance benefits include reimbursement for prepaid, non-refundable travel costs if your trip is interrupted or cancelled due to unexpected circumstances such as illness, injury, or severe weather.
2. Lost or Stolen Luggage
If your luggage is stolen, lost, or damaged during your journey, travel insurance can help cover the cost of your belongings, providing compensation for the items you need to replace.
3. Medical Expenses Coverage Abroad
Travel insurance also includes coverage for medical expenses incurred while abroad. This can be crucial if you fall ill or have an accident during your trip, ensuring you get the necessary medical care without incurring high out-of-pocket costs.
4. Emergency Evacuations
In case of a critical medical emergency that requires evacuation, travel insurance can cover transportation costs to the closest medical facility or even repatriation to your home country.
What Does International Health Insurance Cover?
International health insurance offers comprehensive coverage for medical needs, catering to those living abroad for longer durations. Here’s an overview of what it typically covers:
1. Comprehensive Medical Coverage
International health insurance offers extensive medical coverage, including treatment for illnesses and injuries, regardless of where they occur.
2. Routine Check-Ups and Preventive Care
Unlike travel insurance, international health insurance covers routine check-ups and preventive care, ensuring expatriates maintain their health while living abroad.
3. Chronic Condition Management
International health insurance provides ongoing management and treatment options for individuals with chronic conditions. It helps them manage their health effectively while living away from their home country.
4. Hospitalisation and Specialist Visits
This insurance covers hospitalisation costs and specialist visits, providing expatriates with access to quality healthcare services without worrying about exorbitant medical bills.
Difference Between Travel Insurance and International Health Insurance
The table below shows the key difference between travel insurance and international health insurance.
| Aspect | Travel Insurance | International Health Insurance |
| Coverage | Short-term, trip-specific. | Long-term, comprehensive health coverage. |
| Duration | Specific to the duration of the trip. | Continuous, as long as the policy is maintained. |
| Cost | Generally less expensive, based on trip length. | It is more costly due to its comprehensive nature. |
| Suitability | It is ideal for vacationers, business travellers, and short-term stays. | Best for expatriates, long-term residents abroad. |
| Medical Coverage | Emergency medical expenses during the trip. | Routine, preventive, and chronic condition care. |
| Additional Benefits | Trip cancellations, lost luggage, emergency evacuations. | Routine checkups, specialist visits, hospitalisation. |
Key Takeaways
Choosing the right insurance depends on your travel plans and health needs. If you’re planning a short trip, travel insurance can provide essential coverage against travel-related risks. However, if you’re moving abroad or planning to stay for an extended period, international health insurance offers the comprehensive medical coverage you need.
Simplify your insurance decisions with PhonePe, making it easier to find the best coverage for your travel and health needs.
Frequently Asked Questions
How does travel insurance differ from international health insurance?
Who should consider buying travel insurance?
How to choose the right insurance for abroad?
What type of coverage does PhonePe travel insurance offer?
Does travel insurance offer repatriation coverage?
