Expats live abroad for various reasons. Some are digital nomads who can work remotely. Others are retirees with a desire to see the world in their golden years. And although there are always inherent risks in leaving your home country and living abroad as an expatriate, you can mitigate many of those risks with the best expat health insurance. But how does expat health insurance work? Here are the basics.
What is Expat Health Insurance?
Expat health insurance is major medical insurance for people who primarily live outside their home country. It can be an excellent choice for expats, retirees, or workers outside the USA who are unable to get sufficient health insurance coverage through another means such as an employer.
Who Can Purchase Expatriate Insurance?
Anyone who primarily lives outside their home country is eligible to purchase expat insurance up to age 74. Those who enroll in health insurance for expats by age 64 can renew coverage to a higher age than 74.
Does Expat Insurance Need to Be ACA Compliant?
None of the expatriate health insurance plans we offer are Patient Protection and Affordable Care Act (also known as PPACA, ACA, or Obamacare) compliant. Fortunately, this is not an issue for many expats. Any US citizen who lives outside the United States for at least 330 days per year is exempt for maintaining ACA compliant health insurance coverage. If you live abroad more than three months per year but less than 330 days, you may incur a state tax penalty for not maintaining ACA health coverage.
Can I Buy Health Insurance in My Country of Residence Instead of Expat Insurance?
This may be possible depending on your country of residence and their laws about foreigners purchasing health insurance. However, local health insurance often will have far lower coverage limits, and it will lack the portability of expat health insurance. If you’re living in one country during the summer and decide to move to another country in the winter months, you’ll lose insurance coverage from the first country. Expat health insurance can cover you anywhere in the world outside of your home country.
What’s the Best Way to Buy Expat Health Insurance?
We recommend an insurance comparison website like Insubuy. You can get instant quotes for expat insurance, compare plans side by side, and purchase online in minutes. Insubuy is the best place to purchase expatriate health insurance. Compare plans and get quotes today!
5-Step Guide to Becoming an Expatriate (for American Citizens)
Step 1: Define Your "Why" and "Where"
- Clarify Your Motivation: Why do you want to live abroad? Is it for career opportunities, a lower cost of living, cultural immersion, retirement, or a change of pace? Understanding your "why" will guide your decisions.
- Research Potential Destinations: Consider factors like visa requirements, cost of living, healthcare systems, language barriers, job markets, safety, and cultural compatibility. Utilize the destination guides on this website and government travel advisories.
- Shortlist and Visit: Once you have a few potential destinations, plan short trips to experience them firsthand. This will help you determine if the reality matches your expectations.
Step 2: Secure Your Legal Status
- Visa and Residency: Research the specific visa and residency requirements for your chosen country. Some countries offer digital nomad visas, retirement visas, or work visas.
- Consult with Immigration Experts: If needed, seek advice from immigration lawyers or consultants specializing in your target country. U.S. embassy websites can be great sources of knowledge.
- Tax Implications: Understand the tax implications of living abroad, both in the U.S. and your host country. The U.S. taxes citizens on worldwide income, even if they live overseas. Consult with a tax professional specializing in expatriate taxes.
Step 3: Plan Your Finances and Logistics
- Budgeting: Create a detailed budget that includes living expenses, housing, transportation, healthcare, and potential emergencies. Factor in currency exchange rates.
- Banking and Finances: Set up international bank accounts, consider credit cards with no foreign transaction fees, and arrange for money transfers.
- Housing: Research housing options and costs in your target location. Explore long-term rentals or potential property purchases.
- Shipping and Storage: Decide what belongings to take, ship, or store. Consider the costs and logistics of international shipping.
Step 4: Secure Expatriate Travel Insurance
- Comprehensive Coverage: Standard US health insurance often doesn't cover you abroad. Expatriate insurance provides comprehensive coverage for medical emergencies, evacuation, repatriation, and other travel-related issues.
- Tailored Plans: Choose a plan that meets your specific needs and destination. Consider factors like coverage limits, deductibles, and pre-existing conditions.
- Emergency Assistance: Ensure your plan includes 24/7 emergency assistance and support services. This is critical in case of unexpected events.
- Peace of Mind: Expatriate travel insurance offers peace of mind, knowing you're protected against unforeseen medical and travel-related expenses. It is an absolute necessity for anyone living abroad.
Step 5: Integrate and Adapt
- Learn the Language: Even basic language skills will enhance your experience and facilitate integration.
- Embrace the Culture: Be open to new experiences, respect local customs, and participate in community events.
- Build a Support Network: Connect with other expatriates and locals to build a support system and combat potential feelings of isolation.
- Stay Connected: Maintain ties with friends and family back home through regular communication.
- Be Patient: Adjusting to a new culture takes time. Be patient with yourself and embrace the learning process.
Good luck, and enjoy living abroad outside the USA!