Imagine you pick up a bug on a work trip to Spain or get stung by a jellyfish while swimming in Thailand. How would you cover the medical bills, especially when you haven't budgeted for such medical emergencies? Quality healthcare costs money. If you are a digital nomad, frequent traveller, or expat managing foreign currency, you’d understand that getting health insurance across borders and saving in foreign currencies can be challenging. Global health insurance ensures access to affordable, quality healthcare in foreign currencies.

In this article, we will discuss how to obtain health insurance and save in foreign currencies.

Also read: Expat banking 101: Opening an account before relocation

Why health insurance matters

Healthcare costs are rising globally, and emergencies are often unpredictable. Health insurance protects you from sudden, significant expenses that could lead to a financial mess. For those living abroad or working internationally, insurance becomes even more vital because:

• Cross-border medical care: Many local policies may not cover you outside your country of residence.
• Access to private healthcare: In regions where public healthcare is inadequate, private cover ensures you receive timely and quality treatment.
• Visa and residency requirements: Certain countries, such as those in the EU, require proof of health insurance for residency permits.
• Peace of mind: Knowing you’re financially shielded against unexpected illness or accidents helps you focus on work, personal growth, and enjoying the country.

Types of health insurance to consider

When choosing health insurance, it is essential to evaluate the level of coverage, portability (the ability to switch to a different insurance plan), and costs. The common types include:

• Local health insurance: Affordable, but often limited to a specific country and healthcare network.
• International health insurance: Offers cross-border coverage and flexibility, ideal for expatriates and frequent travelers. They include benefits such as outpatient care, maternity care, and dental care. Premiums vary based on age, location, and the level of coverage.
• Travel medical insurance: This is typically best suited for short trips or temporary stays, especially those lasting less than six months. It focuses on emergencies rather than routine care. It's cheaper but less comprehensive and recommended for holidays or initial relocations pending a more comprehensive medical insurance.
• Employer-sponsored insurance: This is usually part of an employment benefit package and is most commonly available to expatriates. It is often comprehensive, but may end once you leave the job.
• Supplementary insurance: Provides additional benefits, such as dental, maternity, or mental health coverage.

How to choose the right plan

Before selecting an insurance package, there are certain questions you must ask.

1. Stay duration: Are you looking for long-term or short-term medical insurance?
2. Assess need: What healthcare services are you likely to require during your stay?
3. Coverage area: Does it cover multiple countries or just one?
4. Network of hospitals: Are reputable facilities included?
5. Exclusions: Does it exclude pre-existing conditions or certain treatment plans?.
6. Cost effectiveness: Does it balance cost with value?
7. Claim process: How swift and seamless is the claim process?

Also read: How to manage international payments while living abroad

Why saving in foreign currencies is essential

Just as health insurance secures your physical well-being, saving in foreign currencies safeguards your financial health. For people living in countries with volatile economies or inflation-prone currencies, holding assets in stronger currencies like USD, EUR, or GBP can provide:

• Value protection: Foreign currencies are often more stable and resistant to devaluation.
• Easier international transactions: Paying for online services, tuition fees, or subscriptions becomes simpler when you save in foreign currencies.
• Travel convenience: Holding strong currencies means less exposure to poor exchange rates when abroad.
• Diversification of assets: Holding a mix of assets in different currencies spreads risk across global markets. If your domestic economy faces a crisis, your foreign currency savings can provide a financial buffer.
• Global investment access: Saving in a foreign currency gives you the flexibility to invest directly in international stocks, bonds, or real estate that are often priced in major global currencies.

Challenges with saving in foreign currencies

Before we proceed, we should give you a heads up that saving in foreign currencies also has its risks, even though you can mitigate them with Grey.

• Currency exchange risk: Fluctuations in exchange rates are the most significant risk. An unfavorable conversion could reduce the value of your savings when converting them back to your local currency. This is why you should monitor the exchange rate in real time on Grey to note when the rates are most favourable.
• Higher fees: Foreign currency accounts may come with higher transaction and maintenance fees compared to local currency accounts. Converting money to and from a foreign currency account can also incur exchange rate costs. Grey offers low and transparent charges on international transactions and a competitive exchange rate. Planning your transactions and conversions can help you avoid multiple transactions and multiple charges.
• Tax implications: Saving in foreign currencies may have tax consequences and reporting requirements depending on the country and currency. You may need to consult with a tax specialist to know what applies in your situation. However, with Grey, users can easily monitor cash flow, access accounts, and track USD debit card expense insights in no time to file their taxes.

Also read: How to manage multiple currencies as an expatriate with Grey

Saving in foreign currencies

You can save in foreign currencies by opening a multi-currency or foreign savings account through some international banks. Some banks even offer fixed-term savings accounts in foreign currencies, often with higher interest rates than local savings accounts. However, most conventional banks are plagued by delayed transactions, exorbitant transfer charges, lengthy paperwork, regional restrictions, and unfavourable currency conversion fees.

These challenges have tilted more people to favour fintechs such as Grey, Wise, or Revolut, which support multiple currencies. Requirements include a valid ID, proof of address, and your personal details. Online payment platforms make setup straightforward, often with apps for real-time rate tracking.

Grey offers accounts that allow you to hold, save, and transact in multiple currencies in one place. You can protect your health and secure your finances with multi-currency accounts and global payment solution. Whether you are a digital nomad, an expatriate, or a professional managing international payments, this process makes it effortless.

Get started with Grey today to start saving in foreign currencies.

‍