Take the Confusion out of Travel Medical Insurance
Apr 22, 2019
Travel insurance terms can be confusing! Let’s take the confusion out of four key terms found in travel medical insurance plans: premium, deductible, coinsurance, and medical maximum.
Premium is a fancy word for the cost of the travel medical insurance plan. It’s the amount you pay upfront to buy the plan.
The amount of the premium is affected by the length of your trip, your age, and the deductible and medical maximum you choose.
Generally, the longer your trip and the older you are, the more you will pay.
Now for the deductible. It’s the amount you pay before the insurance company pays on your claim. You only need to meet your deductible once during your coverage period.
You select a deductible when you buy a plan. Options for our Liaison plans range from $0 to $5,000.
A higher deductible will lower your premium, because you’ll be responsible for absorbing more of the cost of your claim.
A lower deductible will increase your premium. Why? Because you’ll pay less toward your claim.
Coinsurance is next. It’s a payment you share with the insurance company.
When you file a claim, you pay your share of coinsurance after you pay the deductible, if you have one. (Remember, $0 is a deductible option!). Coinsurance is shown as a percentage, and you pay the smaller of the two amounts.
For example, if your coinsurance is 80/20 for the first $5,000 of medical expenses, you pay 20% of the first $5,000 of expenses, and the insurance company pays the remaining 80%. Once coinsurance is satisfied, covered expenses are payable at 100% by the insurance company.
Finally, we have medical maximum. It’s the amount the insurance company pays for a covered sickness or injury that occurs while you’re covered by the plan.
Think of it as a giant bucket, and medical expenses like hospital room and board, emergency room expenses, doctor office visits, and prescription drugs are paid from that bucket. If your expenses total more than your medical maximum, the amount above the medical maximum is not covered.
Medical maximum options range from $50,000 to $5,000,000 for Liaison travel medical plans.
The lower your medical maximum, the lower your premium. Likewise, the higher your medical maximum, the higher your premium.
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