Choosing the best health insurance plan is an important decision in the life of every expat, as rushing and choosing the wrong policy can be costly. This article provides a step-by-step guide to help you choose the right health insurance

Getting health insurance is a priority for many people around the world. About 60% of Americans have some form of health insurance, and in the UK, the figure is 50%. Health insurance has become especially popular since the Covid-19 pandemic. People have realized that insurance is no longer a privilege, but a necessity for many families around the world.

However, choosing the right health insurance policy can be a daunting task, especially if you don’t know what factors to look for when buying it.

To make this process easier, today we’ll walk you through the 7 steps you need to take before purchasing health insurance.

Step 1 – Choose a health insurance market

Most people get health insurance through their employer. If your employer offers a policy, you may not need to look for an alternative in the private insurance market. However, while employer-sponsored insurance is cheaper, it may have limited coverage. Therefore, we recommend that you find out what services are covered by your employer’s policy and, if necessary, continue your search among private companies.

Step 2 – Analyze your requirements

If you are planning to purchase health insurance for yourself or any other family member, first try to find out what your basic requirements are. To do this, analyze whether you have any chronic diseases and what additional medical services you may need, such as pregnancy management, childbirth, etc.

If necessary, pay attention to specialized policies, for example, if you are taking out insurance for your parents, who are elderly, then it will be much more expedient to buy a policy for the elderly for them, rather than standard insurance.

Step 3 – Determine the amount of coverage you need

Experts advise that the amount of health insurance should exceed at least 6 times the average salary in the country of residence. For example, if the average salary in the country is $1,500, then the cost of the policy should be $9,000. If you are taking out one policy for the entire family, then this amount should be multiplied by the number of family members, that is, the coverage amount for a family of 4 should be $36,000.

Step 4 – Pay attention to the important components of the policy

After you have decided on your requirements and the amount of coverage, you should pay attention to several factors that must be present in your policy:

- Inpatient hospitalization – when a person is in the hospital for more than 24 hours, this is called hospitalization. Look for a plan that will provide you with maximum coverage for inpatient hospitalization.

- Day hospital treatment – ​​many procedures and surgeries, such as chemotherapy, cataract treatment, dialysis, do not require the patient to be hospitalized. This treatment can be received within a few hours in a hospital and is called day treatment. Therefore, look for a policy that also covers day treatment.

- Pay attention to the period of compensation and the exact amount of coverage for each type of medical care.

Step 5 – Compare the amount of additional costs

In addition to your monthly premium, your insurance policy may include additional costs. Here are some key terms you may see on your insurance policy:

- Copayment is a fixed fee (e.g. $20) that you pay each time you receive a medical service or procedure.

- Coinsurance is a percentage (e.g. 20%) of the medical bill that you pay, the rest is covered by your health insurance plan.

- Deductible is the amount you pay for medical care before your insurance plan starts paying.

- Out-of-pocket maximum is the most you will pay out-of-pocket for medical care in a year. Once you reach this maximum, your insurance will pay the rest.

- Copayments are the amount that exceeds the amount your insurance policy covers, and you must pay it out-of-pocket.

- Premium is the monthly amount you pay for your health insurance policy.

In general, the higher your monthly premium, the lower your out-of-pocket costs, such as copayments and coinsurance (and vice versa). A plan that pays most of your medical expenses but has higher monthly premiums may be better if: you see a general practitioner or specialist frequently, you often need emergency care, you regularly take expensive or branded medications, you are pregnant, planning to have a baby, or have young children, you have an upcoming elective surgery, or you have been diagnosed with a chronic condition such as diabetes or cancer.

A plan with higher out-of-pocket costs and lower monthly premiums may be a better choice if: you cannot afford the higher monthly premiums of a plan with lower out-of-pocket costs, you are in good health, and you rarely see a doctor.

Step 6 – Compare the hospital network of different insurance companies

Usually, if you buy an insurance policy, in case of illness you will need to contact doctors at certain healthcare institutions. If you have a hospital that you know and think will suit you best, make sure that it is part of your insurer’s hospital network. If you are used to working with a certain doctor, also check if he has an agreement with your insurance company.

Step 7 – Find out the scope of services

At this stage, you will already have several policies to choose from. Therefore, check in detail what scope of services each insurance company provides. Some may have broader coverage for additional procedures such as physiotherapy, infertility treatment or mental health, while others may have better coverage in emergency cases.

Quite often, when buying a health insurance policy, people pay attention to the low cost of insurance and make a mistake, because the amount of the insurance premium is an important factor that should be taken into account when buying health insurance, but at the same time it does not guarantee that your policy will meet all your requirements. It is also very important to take out a policy with a reliable insurance agent.

Taking out health insurance is an investment in your own health and financial security. The right policy allows you to avoid unforeseen expenses and get quality care at the right time. When choosing insurance, it is important to focus not only on the cost of the premium, but also on the completeness of coverage, the reliability of the company and your own needs. If you approach this process carefully, health insurance will become a real protection for you and your family.

If you are planning to move abroad for work or study, the issue of health insurance becomes even more important. In many countries, a policy is a prerequisite for obtaining a visa or residence permit. To properly prepare documents and avoid rejection, you should contact professional migration lawyers. They will help you choose the best insurance policy, prepare a package of documents and accompany you at all stages of registration.

Reminder! Health insurance in the USA is one of the main issues for those who plan to live, work or study in this country. Find out what types of health insurance are available in the USA in 2025, how HMO, PPO, EPO, POS, HDHP and HSA differ, what are the average prices for plans and how to choose the most profitable option for yourself and your family.

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