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Anyone who has moved abroad knows the challenges and decisions - Do I sell my current home or rent it out? Do I buy or rent my first home in my new country? Should I enroll the kids in public or private schools? How do I make sure my aging parents are cared for without putting too much burden on my siblings? And the list goes on.
When there are so many “big questions” to think through, it’s tempting to brush aside health insurance as something you can come back to later on. But as our friends over at
Pacific Prime Hong Kong know full well, if you fail to handle your family’s health insurance the right way, you could find yourself not properly covered, right when your health (or that of a family member) depends on your ability to foot some hefty medical bills.
So what should you do about your health insurance? Our friends at Pacific Prime Hong Kong have shared with us their valuable insight, which we’ll share with you here.
Top considerations relating to your family’s health insurance
To prevent unpleasant surprises, here’s how you should prepare for leaving Hong Kong:
1.Find out what the healthcare system is like in your new country
Your future health insurance needs will obviously depend on your new country's healthcare system, particularly the public healthcare system. That’s why it’s crucially important to check out the website of their health authority. Beware that in some countries (e.g. Canada), public healthcare is determined and administered at the provincial/state level, which means the contents can vary between different parts of the same country. However, the federal government will typically mandate a minimum set of services that all local governments must provide.
In addition to that, talk to relatives and friends who are familiar with the healthcare system of the country you’re moving to, and hear what they have to say about it. Sometimes the authority may paint a very rosy picture, but the user knows better.
Also, pay attention to what health plans insurers are offering in your new country and their fees. The fact that these plans are on offer means that many locals find them useful, and there’s a good chance that, eventually, you will want to secure one of these plans.
2. Find out whether your current policy will provide coverage in your new country
It’s important to go into the details of what’s covered and what’s not covered by your current policy, and don’t rely on the name of the policy for that. For example, some international health plans will stop providing coverage once you become a local resident in your new country, while many policies offer up to 30 days of emergency coverage even if you’re outside the area of coverage.
As a general rule, if your current plan truly meets your needs in the new country and the costs are in line with the best alternative, keeping your current plan is your best bet (keep reading for the reason). More likely, however, is that your current plan will not meet your future needs or it costs way more than the alternatives, in which case you may consider non-renewal. Don’t simply stop paying premiums though, as failing to honor contractual obligations could affect your future eligibility for other insurance products, among other things.
3. Look into your current group policy
Your employer’s group policy may allow employees to “convert” their participation into an individual policy when they switch employers, and the beauty of that is you will not have to go through the underwriting process all over again, meaning your pre-existing conditions will not be excluded.
The trickier issue of whether and how that new individual policy can continue coverage after your move, and whether it is worth continuing, is something only a good broker with international experience can advise on.
4. Think about how permanent your move is likely to be
One common and potentially costly mistake among people who relocate is to assume that they are leaving for good. The truth is, you won’t know until at least you have settled down in your new country for a number of years.
That’s why it’s important to consider the possibility of eventually coming back. If feasible, ensure you will have sufficient coverage in Hong Kong if you come back after some time (and often, the simplest way is to keep your current plan). Some extra costs may be incurred, but you could be saving yourself a lot of headaches down the road. Don’t forget that if you secure health insurance all over again after a few years, your eligibility, terms, and premiums will be based on your age and health condition at that time.
5. Plan for the future
Now that you have a basic understanding of the healthcare system in your new country and the other relevant matters, it’s time to make a plan. This plan should address, at a minimum, what to do with your current coverage and what new coverage you’ll need to secure, along with a timeline and budget.
Bear in mind that the public healthcare benefits in your new country may not be available to your family for the first few months. Temporary coverage is available if your current coverage will not fill that void. Indeed, to avoid abuses, even for citizens, public healthcare benefits are often unavailable for the first few months of their return after a long spell of absence.
6. Talk to your broker about your move and plans
After you have pondered all the issues above, it’s time to talk to an insurance broker with a good reputation. With their expertise and experience, they often know the answer before their clients are even aware of the question.
Level with your broker about your circumstances and plans, and don’t be afraid to show your uncertainties and doubts. It’s only human to feel uneasy about uprooting your family and starting a new chapter in another country. Your broker has seen it all, and because they work with multiple insurers, they can present the best options, and their ability to help you hammer out a good insurance strategy is unmatched.
May the new chapter of your life be filled with pleasant surprises!
About Pacific Prime
With more than 20 years of experience under their belt,
Pacific Prime Hong Kong is well-positioned to apply their expertise and experience in all matters related to insurance, to provide unbiased advice that only a leading global insurance brokerage can. And because Pacific Prime Hong Kong works with all the major insurers, you and your family will be presented with the best options that also fit your budget, which you can secure at no extra cost!
So,
get in touch with Pacific Prime Hong Kong to discuss your needs, or for a FREE plan comparison today!