Medical Insurance VS Healthcare Assurance

Most people assume that medical and health covers are the same. I actually think they are different for  many reasons. One is stated in the here-above post title. You may have noticed I used two different terms to define each type of cover. The first is Insurance, the other is Assurance.

Can a simple “A” make such a difference? Let’s go back to their definition.

Insurance: an equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium

Assurance: The state of being assured; firm persuasion; full confidence or trust; freedom from doubt; certainty.

I think the difference is notable. Insurance is to get protection for specifics, while assurance is a lot more comprehensive. Medical insurance is typically what one can get in most countries, especially in Asia or America, while healthcare assurance is the preferred system for many European nations. The difference in perception can nurture surprises for European who are not used to be covered for specifics only. They usually expect to get the same level of cover as back home, even when picking the basic insurances.

Let’s review both to get a better grasp of their differences.

Medical Insurance
Typically local and international programmes and providers, who offer covers can be for emergency only or basic. They offer a choice of deductibles, exclusions, options and other customization to meet individual needs and expectations. Cover options can include hospitalisation, inpatient and outpatient costs, doctor and surgical fees, emergency evacuation (home country or nearest suitable hospital), physiotherapy, chemotherapy, radiotherapy, dialysis, local ambulance charges, organ transplants and others (though the list is already pretty good!)

Healthcare Assurance
Only international providers can assure you to such a level. It is much more comprehensive and protects your lifestyle instead of just offering specific insurances. As you can expect, its comprehensiveness means it is more costly. A lot of European forget how much their healthcare system is subsidised through taxes and are shocked to hear the cost of a decent health cover. The explanation is pretty simple. On top of all the medical cover, you get cover for dental, optical, maternity, chiropractors, osteopaths, acupuncturists, rehabilitation & home care and many others. It also is a rule of thumb that such provide offer better service and are more understanding.

If budget were not an issue, we would all chose healthcare assurance, isn’t it? Unfortunately we sometimes have to compromise. But we should do so knowingly. To help you in your research you should target an insurance budget of between 3% to 5% of your income. This should get you a good cover. You can also contact me should you wish to discuss this further!