Insurance Considerations Before You Move Overseas
The freedom to retire means no longer having to work every day and being able to travel at leisure. It also means you can sell your house and spend your senior years living in a foreign country, taking in new experiences and meeting new people. However, it’s essential to consider insurance options carefully before you decide to retire abroad to ensure you have coverage in case of emergencies or health issues.
This article will guide you through important aspects of health insurance for retirees living abroad, including how Medicare works overseas, expatriate coverage options, and policies for pre-existing conditions. We’ll also recommend the best plans to ensure you’re fully protected during your retirement abroad.
International Health Insurance for Retirees Living Abroad
While your Social Security may apply regardless of your international destination, more than likely, your health insurance will not. Investing in inadequate health and medical insurance is a requirement for many countries, and you often need it to obtain a visa.
If you live abroad for most of the year, it’s best to invest in a high-quality international health insurance plan to give yourself and those back at home peace of mind. Unlike basic travel medical insurance, which is only valid for a limited amount of time and does not offer the same broad range of coverage, international health insurance or expatriate insurance plans often cover:
- The ability to choose your hospital or medical facility
- Routine doctor’s visits and testing
- Access to 24-hour emergency assistance and a medical hotline
- Emergency Evacuation
- Dental coverage
- Prescription benefits
Read More: Senior Travel Insurance Options for trips of less than one year
Global Medical Insurance When You Retire Overseas
Many global insurance plans also offer additional benefits, including vision coverage and other optional add-ons. By selecting an insurance plan that suits your individual needs, you can rest assured that you are covered for even the most unexpected of situations – including those that are unique to you, such as if your new eyeglasses accidentally break or you lose your prescription.
Just as everyone who decides to retire abroad does so for different reasons, their insurance plan and coverage are also different! In addition to specific insurance needs, a person’s eligibility and premiums are also individualized based on age, current and past medical history, and relocation area.
Plans and pricing will also vary depending on whether you are traveling alone, as a couple, or as a family. The best option for you depends on where you plan to live, who you are traveling with, and the lifestyle you intend to live while there. For example, if you plan on retiring abroad in a villa in Tuscany, your coverage and cost will differ from someone retiring in Turkey near the Iranian border.
Retiring abroad is not for everyone. If you plan on traveling internationally while deciding whether to stay in a specific country permanently or if you plan on only spending a portion of the year overseas, you may want to look at travel insurance or a basic international insurance plan.
Before deciding, it is important to note what coverage you need and want, e.g., vision coverage if you rely on your glasses to drive, and your intentions while you will be living abroad, e.g., hiking the mountains versus reading on a balcony overlooking vineyards. Once you know this, contact a licensed insurance agent and review a plan’s inclusions and exclusions to ensure you are fully covered.
The Best Health Insurance Plans for Retirees Abroad
We work with most international insurance providers and can strongly recommend Cigna Global Insurance as a preferred insurance provider for seniors retiring abroad. They will cover seniors of all ages and offer a flexible plan design, allowing you to pick the benefits you need (and exclude those you don’t).
Cigna Global Insurance Plan
- The flexibility to tailor a plan to suit your individual needs
- Access to Cigna Global’s trusted network of hospitals and doctors
- The convenience and confidence of 24/7/365 customer service
Insurance Advice on Medicare and Seniors Living Abroad
(Source: Medicare Interactive)
For US retirees, if you live outside the United States, you should understand how your Medicare is affected and should make decisions about your enrollment in Medicare. If you qualify for Medicare, you can have Medicare Parts A and B, also known as Original Medicare, when you live abroad – whether you enroll before you leave the United States or after you move to a foreign country. However, Medicare does not typically cover medical care while abroad.
Consider the costs, circumstances, and plans to decide if you need your Medicare while living abroad. Most people pay no premium for Part A coverage for inpatient hospital services. It is usually best to keep Part A, even if you are moving abroad since it will not cost you anything.
To have Part B coverage, you must pay the Part B premium. You may also need to keep Part B, especially if you plan to move back to the United States in the future or travel here frequently. Keeping Medicare when you live abroad will ensure that Medicare is ready to pay for your care when you return to the United States to live or travel.
If you fail to pay for Part B while overseas, you may go months without health coverage when you move back to the United States. You may have to wait until the General Enrollment Period (January 1 – March 31 of every year) to enroll and then wait until July 1 for your Part B coverage to start.
Additionally, if you do not keep Part B while living overseas, you may face lifelong premium penalties that will make your Medicare coverage more expensive upon your return.
Seniors: International Insurance Advice
Many retirees dream of enjoying their retirement as expats, immersing themselves in a new language, culture, and way of life. Living out your golden years in another country can be exciting, thrilling, and nerve-wracking all at once.
As the number of older expatriates increases, so do concerns like healthcare and insurance. Health insurance for aging expatriates can be difficult to understand and find. Some important questions you should consider before retiring are as follows:
- Will my policy end when I reach a certain age?
- Will I be covered if I return back to my country of citizenship?
As you begin to research the many expatriate plans out there, you will notice that age is a big eligibility factor with most of them. Unfortunately, age is a huge underwriting factor with most senior health insurance plans. As we get older, we “age” out of eligibility for many available health plans.
Read More: The Expat Life: What to Know Before You Go:
For some plans, the age for eligibility completely ends at 65. Other plans offer “senior coverage” if you’ve had their plan for a specified length of time (usually 10 years of continuous coverage). Most plans that offer “senior coverage” have limited benefits and reduced maximum policy limits. Because of this, it’s wise to have an annually renewable international health plan in place early.
Read More: Travel Insurance Plans for Seniors
When it comes to health insurance for retirees living abroad, there are several types of plans available in the marketplace today. Some are annually renewable and provide worldwide coverage, and others are short-term plans that provide coverage outside the home country.
Age and How it Affects Insurance Costs for International Retirees
Individuals typically receive more benefits the younger they are when they apply for expatriate health insurance. Starting to plan for worldwide health insurance early in your retirement planning is definitely a step in the right direction.
Individuals over sixty will find higher premiums and possibly even more expensive medical care in their country of residence. Be assertive and watchful, for a variety of insurance plans will only accept new members up to a certain age.
Ensure you fully understand your benefits, premiums, and processes for expatriate insurance at any age close to and exceeding sixty. As you age, policies may exclude your pre-existing conditions or deny you coverage due to your age. Don’t wait until you are sick or injured – the prime time to purchase is when you are healthy.
Pre-Existing Conditions and Insurance for Retirees
As you continue your international health insurance search, read carefully about what is covered regarding pre-existing conditions. These days, some common conditions will be included in your policy since many are considered ‘manageable’ and, therefore, lower risk than in previous years.
Most expat insurance companies will consider each application individually, and acceptance is quite possible with these and other conditions. Read thoroughly about what your potential health insurance plan states regarding pre-existing conditions.
When moving out of the country, it is advisable to go through the underwriting process and complete the waiting period before going overseas. This will make the road to coverage much smoother. Also, explore the list of exclusions and thoroughly understand your benefits with your worldwide health insurance plan.
Some Typical Exclusions on International Insurance for Older Applicants Abroad
While you may be surprised by what your health insurance for retirement covers, you may be just as surprised by what it does not.
It is common for your policy to exclude any drug addiction therapy or the like and to also often exclude alternative treatment options, such as yoga or acupuncture. Keep this in mind as well, especially if you are planning retirement to a community specializing in alternative therapies.
Coverage Depending on Retirement Location
What your international health insurance policy will cover will vary depending on your location. For example, if you’re retiring to Ecuador, your potential medical needs may be very different than if you were retiring to Spain. However, you will likely find that the treatment you receive is comparable because many of the doctors in retirement locations have attained their training in the United States or Europe.
Wherever you go, healthcare will be different from what you received at home, and it is important to ask your insurance advisor specific and thoughtful questions to learn what they will offer you in the policy.
If you are considering a long-term, annually renewable plan, the Global Medical plan provides Overseas Health Insurance Coverage for retired expatriates. This plan offers lifetime coverage if you enroll in the plan by your 65th birthday and maintain continuous coverage to age 75.
Before your 75th birthday, you will receive a summary of benefits for the new plan, “Global Senior Plan,” and an enrollment form for coverage. There is no additional medical underwriting required! You simply need to review the benefits, complete them, and return the enrollment form with your premium.
The Best Health Insurance for Retirees Living Abroad
The Cigna Global Medical Plan is a great option for retirees for several reasons. First, there are no age limitations. You can apply at any age and retain the policy for life.
Other plans will cancel their policy once you reach a certain age or restrict benefits after age 75. With Cigna Global, you can maintain the same level of coverage for your life or until you cancel the plan. Additionally, Cigna’s Global Medical Plan is modular, allowing you to choose benefits and coverage areas, which will help keep costs down. Use the links below to review coverage and request a custom quote.
Cigna Global Insurance Plan
- The flexibility to tailor a plan to suit your individual needs
- Access to Cigna Global’s trusted network of hospitals and doctors
- The convenience and confidence of 24/7/365 customer service
If you’re already over 65 and haven’t been enrolled in a long-term plan, other options are still available. The Cigna Global health plan offers annually renewable coverage to expatriates until they reach 80. If taken out before that, this plan will offer lifetime coverage as long as you maintain your premium.
Read More
- Advice on Retiring Overseas
- Senior Medicare Overseas: Get The Coverage You Need
- Sign up for Medicare Part B Overseas
- Why You Should Consider Retiring Abroad
- International Life Insurance Plans