OVERSEAS INSURANCE ABROAD FOREIGN INSURANCE INTERNATIONAL INSURER
WHAT IS A FOREIGN INSURANCE ABROAD?
A foreign insurance is by definition an overseas cover arrangement used by an international insurance company to provide a guarantee of financial compensation in case of loss, damage, or death while being based outside the policyholder country.
A foreign insurance follows the objectives to cover the expenses and costs as a consequence of an unforeseen event to a person either in his or her country or outside his and that can consist of an accident, illness or theft.
An overseas insurance can sometimes be a cover for additional geographical coverage to that covering an insured initially in his country of residence and that can be contracted for limited time.
WHAT TYPE OF FOREIGN INSURANCES ARE EXISTING?
They are two different types of insurance actually:
WHATS THE DIFFERENCE BETWEEN FOREIGN INSURANCE ABROAD AND TRAVEL INSURANCE?
Unlike a foreign insurance abroad which can consist of long-term coverage, travel insurance is dedicated to limited number of stays abroad and generally covers short stays not exceeding a total of 90 days per year.
Short term insurances abroad or travel insurances can be financially a problem, because in the event that an illness or accident occurs on the 91st day abroad, the insured will have to pay himself the medical treatment costs at his expense as he is no longer insured.
ADVANTAGES OF A FOREIGN INSURANCE
A foreign insurance or an insurer abroad can be useful, advantageous or necessary under certain personal circumstances:
- Offer competitive premiums versus local national insurance companies.
- Being an expatriate abroad and needing insurance abroad such as health insurance or car insurance that insurance in her or his country of origin does not cover.
- Spend family holidays abroad and make sure you have health coverage, especially when staying outside Europe.
- Finally, when a student is staying abroad as a foreign student he or she needs a health insurance on site.
POTENTIAL DISADVANTAGES OF FOREIGN INSURERS
Certain foreign insurance policies are not subject to the local rules of a policyholder who contracted an international cover and cannot always benefit from the damage insurance guarantee fund.
Generally, the prudential financial standards that the regulator applies to a foreign insurance company are those of the country of its head office, and become a problem in case a life insurance in not paid the beneficiaries in case the insurer is bankrupt.