Author
Bowtie Team
Updated on
2025-07-21
Disclaimer: This article is translated with the assistance of AI.
Join seasoned financial planner Lam Ching Wang as he dives into the regional restrictions of premium medical insurance – a must-know for anyone planning to relocate overseas or take up jobs abroad!
We all know that when applying for health-related insurance, such as medical or critical illness coverage, you need to fill out a health questionnaire. This helps the insurance company understand the insured’s health status to assess the underwriting risks.
The questionnaire usually includes questions about the insured’s own health, as well as that of their parents or siblings, plus lifestyle habits like smoking or drinking. There’s often one question asking if the insured has ever stayed or lived abroad for an extended period, say 6 months or more.
Ever wonder why insurers care about long stays overseas? Let’s dive into a real case to make it crystal clear.
High-End Medical Insurance Regional Limits
Johnson is a 51-year-old American who recently got a work visa to come to Hong Kong for a 2-year contract. Years ago, he had surgery in the US to remove a benign tumor, with hospital and surgical costs nearing HK$1 million—mostly covered by his US medical insurance. Since that policy didn’t cover Hong Kong, Johnson promptly arranged new coverage upon deciding to work here. He chose a high-end medical insurance plan with no sub-limits on individual items; as long as the total medical expenses don’t exceed the plan’s overall limit, they’re fully reimbursed.
These types of high-end medical insurance come with regional restrictions. Johnson’s options were “Worldwide Coverage” or “Worldwide (Excluding North America).” After reviewing the coverage and calculating premiums, he opted for “Worldwide Coverage” and planned to cancel his US policy. He figured this was the most beneficial and efficient use of resources. On the application, Johnson truthfully declared his past work and life in the US, noting his recent move to Hong Kong.
After underwriting, the insurer worried Johnson might frequently travel back to the US and leaned toward rejecting his “Worldwide Coverage” application, pushing him toward “Worldwide (Excluding North America)” instead. They’d only consider the full global option if he declared a longer stay in Hong Kong or Asia. Since Johnson planned to remain in Hong Kong or move to Singapore after his 2-year contract—spending most time in Hong Kong or Asia—the insurer eventually approved his “Worldwide Coverage” application.
Limits from Medical Costs and Risk Gaps
Today’s high-end medical insurance typically offers three coverage regions: Worldwide, Worldwide (Excluding North America), and Asia. Medical costs can vary wildly by location. Take Johnson’s benign tumor removal: In Hong Kong, similar hospital and surgical fees might only cost over HK$100,000, but in the US, they’re far pricier. Insurers in Hong Kong assume policyholders live here or spend most time locally, so premiums are mainly based on Hong Kong’s medical expenses.
For the popular Asia region, it often includes Australia and New Zealand. But if you relocate to Australia, reimbursements for local treatments drop. One insurer’s terms state: “If the insured resides continuously for 365 days in one of the following regions (Australia, New Zealand, North America, or Western Europe), reimbursements for medical services and/or treatments received there will be permanently reduced to 60% of the eligible amount.”
Another reason insurers ask about long overseas stays is varying risk factors. Living in Africa versus Hong Kong, for instance, poses hugely different health and safety risks. So, applications factor these in. Some insurers add premium loadings for certain locations or outright decline applicants from high-risk areas.
Bottom line: Before buying insurance, get the full picture to avoid coverage that doesn’t fit your life.
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