Travel Insurance vs Medical Insurance - Understanding coverage, eligibility and more

Planning to spend some time abroad? In all the excitement and busyness of planning, one crucial aspect that’s not to be overlooked is getting some insurance keep yourself protected.

International medical insurance and travel insurance both offer financial protection to travellers heading abroad, but with different core purposes. Understanding what they cover and who they’re best suited to is important in deciding what’s right for your plans.

In this guide we’re going to break it down for you, looking at the key differences between travel insurance and medical insurance. Plus, we’ll touch on how to save money while traveling with Wise.

What is travel insurance?

Travel insurance is designed to cover the financial fallout of unexpected events that disrupt your travels. It provides protection for things like trip interruptions, emergency medical expenses, personal belongings and luggage, and is usually purchased for a specific trip.

What does travel insurance cover?

The coverage offered by travel insurance can vary somewhat depending on the plan you choose, but these are the things that are typically covered by comprehensive international travel insurance policies.¹

• Emergency medical, repatriation and evacuation
• Cancelling or changing the trip before departure
• Stolen, lost and damaged baggage and personal items
• Cash, passports and travel documents
• Personal accident and liability
• Rental car excess
• Changes to the trip after departing, including delays, interruptions and cutting it short

Many travel insurance companies also offer coverage extensions for specific activities that are excluded from the standard policies, such as motorcycling and riding a moped, skiing and snowboarding, and cruise ship cover.

What is medical insurance?

International medical insurance offers health coverage to people who’ll be overseas for longer periods of time. The basic level covers medical emergencies and there’s usually options to add other services, similar to a domestic health insurance policy.

What does medical insurance cover?

Depending on the level of coverage and optional extras chosen, these are some of the services that can be covered by an international health insurance plan.²

• Emergency medical treatment
• Medical evacuation and repatriation
• Inpatient hospital services
• Local ambulance and air ambulance transportation
• Global telehealth
• Maternity care
• Outpatient treatment including therapy, medication and rehabilitation
• Medical and genetic testing including cancer screenings
• Vaccinations
• Mental health and wellbeing services
• Optical
• Dental

As you can see there’s no coverage outside of health related expenses but the range of medical situations that can be covered is far wider than travel insurance.

Travel insurance vs Medical insurance - Comparison

To make it easier to understand the difference between travel insurance and medical insurance, let’s compare some of the key features you’ll find in each.

As you can see, the type of trip you’re going on, length of trip and the extent of your medical needs all play a part in deciding what type of insurance is best.

Do you need both travel insurance and medical insurance?

This question can only be answered by reflecting on your travel plans and personal circumstances.

• How long are you travelling for? A short trip or an extended stay can affect your needs.
• What health services do you need? Consider whether you only need emergency medical coverage or if you require ongoing treatment for a chronic condition.
• Is trip coverage important? Think protection against trip cancellations, delays, or interruptions.

Opting for travel insurance

Just getting travel insurance is worth considering for short term holidays or business trips where a mix of medical and trip coverage is good to have. The only downside is routine or non-emergent medical care has to be put aside for when you’re home or be paid out of pocket.

Opting for medical insurance

International medical insurance can be the way to go if you’re going to be away for a long period of time, maybe to study abroad, take an overseas job or live out extended travel plans as a retiree, or digital nomad. It’s about addressing emergent medical problems and ensuring you have coverage for the healthcare services that are important to you, rather than protecting from holiday interruptions.

One consideration here is pre-existing conditions as many travel insurance policies have limited coverage for these. Be sure to read the fine print carefully, and weigh up whether a medical insurance policy that covers pre-existing conditions is the safer choice.

Getting medical insurance and travel insurance

For some people, the best option is to get both types of insurance. Expats with medical insurance tied to one country may want it to take short trips elsewhere. Frequent travellers with complex medical needs and pre-existing conditions might need it to access comprehensive healthcare coverage abroad.

Travel to the United States can also be a factor in getting both, with some international medical insurers separating their coverage areas into Worldwide Including the United States, and Excluding the United States.² Depending on costs, it may be better to exclude the United States in from an annual medical insurance policy, and buy travel insurance for that specific trip.

Which insurance is right for you?

Choosing between travel insurance and medical insurance all comes down to your travel plans and healthcare needs.

If you’re going on a short trip and want general coverage against unexpected events like trip interruptions, medical emergencies and loss of belongings, then travel insurance is the way to go.

If you’re looking for a long term solution with healthcare as the main priority, then international medical insurance may be the better choice.

Heading somewhere? Safeguard yourself against high foreign transaction and currency conversion fees with Wise

Once you’ve figured out your insurance, it’s time to work out the best way to spend when you’re abroad. Meet the Wise account and card.

Open a Wise account online or in the Wise app, add money in AUD right from your bank account, and switch to any of the supported 40+ currencies with the mid-market exchange rate. You’ll be able to get a linked Wise card to use for contactless payments, add your card to a wallet like Apple Pay, or make ATM withdrawals when you need cash. That can mean you save significantly compared to using your bank, as you’ll avoid foreign transaction fees and can rest assured you’re getting one of the fairest exchange rates out there.

No matter where you’re headed, take Wise with you, to cut the costs of your overseas spending.

🚀 Open your Wise account

Please see Terms of Use and product availability for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

FAQs:

Does travel insurance include health insurance?

Travel insurance usually includes health insurance but it’s generally limited to emergency care for events that happen during your trip. Things like outpatient care, chronic conditions, routine-check ups and prescription medication are usually outside the scope of coverage.

Does health insurance cover international travel?

Standard private health insurance usually doesn’t cover international medical expenses, instead they’re designed primarily for domestic treatment in the country the policy is from. If you’re not sure about your policy, you could check directly with the provider to see what their terms and conditions are.

If you have universal healthcare coverage like Medicare or Health New Zealand, you may be afforded some coverage abroad through reciprocal agreements. For example, Australians travelling to New Zealand and vice versa are given access to certain publicly funded healthcare services. That includes emergency medicine. To find out, you can check your government’s health insurance website for more information on current reciprocal healthcare agreements.

What’s primary vs secondary insurance?

Primary insurance is the main policy that pays for your claimed expenses first, up to the benefit limit. Secondary insurance can then pay for any remaining costs that are eligible within that policy, again up to the coverage limit.

Bringing it to a real life scenario, the question of primary and secondary insurance can arise if you have a travel insurance policy from an insurance company as well as complimentary travel insurance through a credit card. Usually the insurance company policy would be the primary insurance while the credit card policy acts as secondary insurance.

Sources last checked on date: 26 February 2025