Health Insurance For Expats: Should You Keep Or Cancel Your Indian Policy?

Relocating to another country comes with many changes, and one crucial aspect to consider is your health insurance coverage. Most health insurance plans purchased in India are designed to cover medical expenses within the country, leaving many individuals wondering if their policy will still be valid after moving abroad.

Will Your Health Insurance Cover You In A Foreign Country?

Most health insurance plans in India are designed to cover medical expenses incurred within the country. These plans provide coverage for hospitalization expenses, daycare procedures, outpatient department (OPD) treatment, and other medical costs at hospitals or health clinics in India. Even road and air ambulance charges can be claimed under certain policies.

However, most health insurance policies have geographical restrictions, explicitly stating that medical expenses incurred outside India will not be covered. This is why Indians traveling or relocating for studies, work, or permanent settlement abroad are encouraged to purchase a health insurance policy in their destination country.

Notably, the validity of your health insurance coverage after moving abroad depends on the type of policy you have:

1. Basic Health Insurance Plans - If your policy does not include global coverage, it will not provide medical benefits once you move abroad.

2. Health Insurance with Worldwide Coverage - Some insurers offer health insurance plans that provide global medical coverage. If your policy includes this feature, you will remain covered for medical expenses even after relocating to another country.

3. Critical Illness Insurance Plans - Benefit-based policies, such as critical illness insurance, may remain valid even if you move abroad. These policies provide a lump sum payout upon diagnosis of a covered critical illness (such as cancer, stroke, or multiple sclerosis), irrespective of where you are residing at the time of diagnosis. However, it is advisable to check with your insurance provider regarding the validity of your critical illness policy outside India.

Should You Cancel Your Indian Health Insurance Policy If You Move Abroad?

If your health insurance policy offers only domestic coverage, it is logical to cancel the policy before you move abroad. Since claims cannot be raised for medical expenses incurred outside India, continuing to pay the premium may not be beneficial.

Instead, you should purchase a health insurance policy in the country you are relocating to. Many countries mandate health insurance for all residents, including foreign nationals. For example:

• Germany requires health insurance coverage for all residents, including expatriates.
• United States mandates health insurance for citizens and many visa categories.
• United Arab Emirates (UAE) requires health insurance for all residents, with employers often providing coverage for employees.

If you are moving abroad permanently, it is advisable to cancel your domestic health insurance policy and buy a new one in your destination country. Always check with your insurance provider to understand the specific terms and conditions of your policy and make informed decisions regarding your health coverage when relocating.