Comprehensive Coverage Vs Fixed Coverage Plans: What Type of Visitors Insurance Coverage Should You Buy?
It is important when traveling to have medical insurance coverage, because most domestic health insurance plans do not offer coverage outside the home country, and you never know what could happen on a business trip or leisure vacation. When it comes to visitor insurance plans, there are two basic options to consider. There are fixed benefit plans, also known as limited coverage plans, and comprehensive coverage plans. Fixed benefit plans offer limited coverage that usually includes the basic travel protection while comprehensive plans offer more coverage and coverage that is more flexible.
Limited Coverage Insurance
You can get basic protection from a limited coverage insurance plan, making the insurance more affordable. However, it is limited to a pre-defined amount for each of the benefits, which allows for some gaps in the coverage. The costs that exceed these pre-defined amounts become out-of-pocket expenses that most people don’t plan for when traveling. Additionally, there is a deductible for each of the various injuries and ailments that comes out of pocket as well. Therefore, if you have a $50 deductible, you will have to pay that out-of-pocket before the insurance coverage begins. There are some benefits of getting a limited coverage plan, which includes:
- Low premiums, so it’s more affordable
- Basic protection, which is good for many of the medical issues you may face abroad
- Fixed or pre-defined coverage to offer some protection from medical expenses
- Small deductible amounts are usually available
When choosing coverage, a limited coverage plan can be cheaper but can have some disadvantages, because it provides fixed benefits. That is why many people choose to protect themselves with a comprehensive coverage plan.
Comprehensive Coverage Insurance
You will get more protection with a comprehensive insurance plan. Most comprehensive plans are only slightly higher in cost but provide better coverage. The plans cover a certain percentage of your bills up to a certain amount and then they cover all of your bills after that, for covered benefits. They are the more preferred option, because they provide more complete coverage, less out-of-pocket expenses, and provide peace of mind when away from home. Most people do not plan for a medical emergency when they are planning an overseas trip. Plus, you are only responsible for a deductible once per policy period, so you don’t have to pay a deductible every time. Therefore, if you have to return to the doctor multiple times, you only have to pay one deductible per policy period. The benefits of choosing a comprehensive policy include:
- Better coverage for medical expenses, to ensure less out- of-pocket expenses
- Percentage-based coverage that offers greater protection
- One-time deductible that saves money over time
- Some plans include travel-related coverages, such as baggage loss coverage and trip cancellation
Many travelers choose comprehensive programs, because they offer better protection, protect against large, unforeseen costs, and offer additional services that other policies lack. That way, if your trip gets canceled, you don’t have to worry about losing the deposit, because it will be covered under certain plans.
Recommended Coverage Option
A comprehensive insurance policy is great for travelers who are at risk for illness, those traveling to countries where health care is expensive like the USA, or those who want to ensure that they don’t experience a catastrophic loss because of a lack of medical coverage. Hopefully, you won’t need to use the insurance when you travel, but if you do experience an illness or an injury, the comprehensive insurance plan will protect you against huge expenses that can end up costing thousands of dollars. When choosing a comprehensive plan, you ensure that your expenses are minimal, so that it can’t affect you for years to come.
Comprehensive insurance coverage plans are essential for travelers because they can protect against an unforeseen incident. None of us want to get sick but many forget to plan for an injury when traveling. Getting the right medical insurance coverage is a smart choice because you never know what can happen and when you are out of town, you don’t want to worry about whether you are covered in the case of an emergency.