Brokerfish

Understanding Area of Cover in Medical Insurance

The Importance of Knowing Your Area of Cover

The geographical area of cover refers to the geographic location where a person is eligible to receive insurance benefits. This area can vary depending on the insurance policy and can range from a specific city or country, to worldwide coverage. Some insurance policies only cover medical expenses incurred within a specific country, while others offer worldwide coverage.

Here are four examples of geographical areas of cover:

National coverage: This type of coverage is limited to a specific country. For example, a health insurance policy may only cover medical expenses incurred within the borders of the United States.

Regional coverage: This type of coverage is limited to a specific region, such as the European Union. Medical expenses incurred in any of the countries within the region are covered, but expenses incurred outside the region are not.

Worldwide coverage: This type of coverage provides benefits for medical expenses incurred anywhere in the world. This is often the case with international private medical insurance policies.

Limited coverage: This type of coverage is limited to specific countries or regions and does not include coverage for all areas of the world.

Regarding out-of-area coverage, this refers to medical expenses incurred outside the geographical area covered by an insurance policy. Depending on the policy, these expenses may not be covered at all, or may be covered only in the case of an accident or emergency. Additionally, some policies may limit the amount covered for out-of-area expenses.

For example, a health insurance policy may only provide coverage for emergency medical expenses incurred outside the policy’s geographical area of coverage, up to a certain limit. In such a case, the policyholder may still be responsible for paying a portion of the medical expenses incurred.