What to know about travel insurance for your working holiday abroad

Travel insurance can be a confusing topic, and yet for most working holiday makers, it is an unavoidable one. We know this because we at pvtistes.net are all working holiday makers ourselves.

In this chapter, we’re going to answer some of the most common and important questions we get about insurance. By the end, you will have a much better idea of what it is, and how to find one that suits your needs.

1. What is travel medical insurance?

Travel medical insurance is a type of insurance policy that individuals can buy when they travel abroad. It typically covers medical expenses incurred abroad resulting from illnesses or injuries. It is an important consideration because in most cases, the health insurance that you have in your home country does not cover medical expenses incurred abroad. And conversely when you are abroad as a visitor (or working holiday maker), you are usually not covered by the local public health insurance either.

2. How do I know if my WHV destination requires me to buy insurance or not?

We invite you to use our WHV destination search tool. Enter your nationality and age, select your destination, and read about its insurance requirements.

3. Do I have to pay for insurance even before getting my visa? What if my application gets denied?

Many WHV destinations (including South Korea and France) require you to submit proof of insurance as part of your application package. In these cases, you would need to pay for insurance for the duration of your planned stay even before getting your visa. In case of visa denial, you can try to request a refund from your insurance provider. Refund policies do vary from insurer to insurer, so if that is an important consideration for you, make sure to ask the insurer first before buying.

If insurance is not a mandatory part of your application process but required for entry into the country (as is the case with Canada), then you can wait until after visa approval to buy it. Make sure to buy one meeting the requirements to avoid being denied entry into the country!

4. Can I be reimbursed if I decide to end my working holiday early?

Refund policies for early returns also vary from insurer to insurer. For the greatest flexibility, choose one that offers this kind of refund.

5. What is not covered by travel medical insurance?

The answer can only be fully answered by reading your policy handbook in detail. But in general, travel insurance is intended for injuries, illnesses, and medical emergencies, not routine or elective expenses. This means that things like annual checkups, vision exams, and teeth cleanings must be paid for out of pocket.

6. What if my WHV destination does not require me to buy insurance?

Even if a foreign government does not require you to buy insurance (as is the case with destination Australia), it is always a good idea to do so for your own benefit. Nobody is invincible to accidents and illnesses, even those who consider themselves young and healthy. If you find yourself uninsured in a medical situation abroad, the hospital bill can easily reach thousands of dollars.

7. Do I need a separate policy if I already have coverage with my credit card company/work benefits/healthcare plan/etc.?

Generally speaking, even if you already have an insurance plan elsewhere, it will not provide enough coverage for your needs. You will still need to take out a separate working holiday travel insurance policy. Most credit cards only cover short trips (i.e. up to a maximum of 30 days’ away from home at a time), not long-term travel. Any healthcare plans you have in your home country won’t cover you abroad. You are also unlikely to have coverage with any of these options for important (often mandatory) items like repatriation costs.

8. Can I get insurance if I’m already travelling?

Most companies will only insure you if you have not yet departed your home country. You will need to look for an insurance company that offers “already travelling” policies, although be aware that these are often more expensive. As such, the best time to buy insurance is prior to your departure.

9. Can I get insurance if I have a chronic or pre-existing health condition?

Having a pre-existing health condition will generally not stop you from being insured. However, you will need to check the specifics of your insurance policy, as it differs from company to company. For example, your insurance may exclude coverage for any medical care related to your pre-existing condition, or you may be charged a higher premium to have it covered. You may also need to provide evidence (e.g. a doctor’s note) that your condition is “stable” before your trip.

10. Can I just get the cheapest one available?

It depends on what your needs, finances, and risk tolerance look like. Generally speaking, cheaper policies offer less coverage and more expensive policies offer greater coverage. If something were to happen (knock on wood), the “cheapest” option might very well actually cost you more out of pocket. Read the next FAQ to learn how to pick good insurance.

11. How do I choose the right insurance?

This is a complicated question requiring a nuanced answer. There are many insurers out there for working holiday makers, but we (as working holiday makers ourselves) recommend that you check at least the following 6 important things:

11.1 What is the excess or deductible?

In case of injury or illness, the excess or deductible (interchangeable terms) is the amount that you have to pay out of pocket before your insurance starts covering for you. For example, if your policy has an excess of $90 but your qualifying medical claim totals $500, the insurance would only reimburse you $410. The excess threshold applies on every claim you file, not just the first one of the year. As you can see, insurance policies with zero excess provide the highest level of protection.

11.2 What is the coverage limit?

Policies can have a coverage limit of anywhere from a couple hundred thousand dollars to several million dollars. There are also policies that don’t have a limit. It goes without saying that the ones without a limit provide the greatest level of protection. These numbers might all seem very high, but don’t underestimate the true cost of medical care in serious accidents or long periods of hospitalisation. Hopefully you will never come close to reaching what the cap is, if there is one.

11.3 Am I covered if I travel to other countries during my working holiday?

This is an important one to check. A working holiday is all about travel and exploration, so if you have multiple countries on your bucket list, check if the policy includes coverage outside of your main destination.

11.4 Am I covered for medical expenses during visits to my home country?

When you leave for a year or two on a working holiday, there is a good chance that you will lose coverage in your home country since you might no longer be considered a habitual resident. As such, check if the policy covers medical expenses incurred during short visits home (e.g., for holidays, a wedding, a celebration, etc.).

11.5 Am I covered for winter sports, scuba diving, or extreme sports?

If you’re going to Canada or Japan, you might want to ski. In Australia or New Zealand, you might want to scuba dive. These activities are not covered by all insurance policies, so check the details carefully. Such higher-risk activities may require you to purchase optional add-ons.

11.6 What is the premium?

Finally, assess the premium. In the insurance world, the premium refers just to the price of the insurance policy (i.e. how much you need to pay per month or year). Is the premium reasonable for the level of coverage it provides? Is it within your budget? Also don’t blindly assume the premium is a perfect indicator of level of coverage; a higher premium can but doesn’t always mean better coverage.

We hope this was helpful! Leave a comment below if you have any other questions.

*Except destination France, which is capped at €150,000.
**Minus a €20 administrative fee.