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When the US State Department issued a Level 4 Global Travel Advisory this month, it effectively considered every country on the planet a high-risk country. A Level 4 advisory is the highest level of advice from the State Department, usually reserved for war zones and countries experiencing natural disaster or serious unrest. In the official statement, the United States advised its citizens to avoid all international travel and return to the United States immediately. While the guideline is clear, for many travelers, especially expats, digital nomads, and those in the middle of a year abroad, the reality of following it is far from straightforward. There are many reasons why those who live overseas can stay there instead of returning to the United States, but if you are one of them, knowing how that might impact one of the most important things you have right now: your travel or your medical care. Assurance. Notices can have a direct impact on your insurance plan, even if you are in a country with low COVID-19 impact. This puts many Americans abroad at risk of losing their coverage. Here’s what you need to know to make informed decisions and protect yourself in the tough times ahead.
How Level 4 Travel Advisory Could Impact Your Coverage
The first thing to keep in mind is that advisories from the CDC, WHO, and the US Department of State may trigger travel restrictions and impact international medical insurance policies by limiting areas of validity of your coverage. Insurers tend to follow these official guidelines, and they often expect their policyholders to do so too. In the context of current warnings, non-essential international travel may be considered high-risk behavior by your provider, which could jeopardize your coverage. So, with the US State Department advising citizens to return home or stay in their foreign country of residence, insurers are likely to expect people to follow suit.
The advice also has direct implications: “Most travel medical insurance plans will exclude all coverage if you enter a level four advisory country,” says PK Rao, president of INF Visitor Insurance. Since all countries are currently rated at level 4, this makes crossing any international border a risk, but it depends on your plan. For some plans, Jeremy Murchland, president of Seven Corners Insurance, says, “Level 4 travel advisory may only affect specific benefits,” such as not covering non-medical emergency evacuations.
The restrictions are more complicated than the level 4 definition
Even if your insurance is valid in Level 4 countries, you probably would not be covered if the country you are in is considered a “Restricted Country” by your insurance plan. Restricted countries include high risk locations or destinations where the insurance provider might not be able to manage benefits. Or it could mean a country where the supplier is concerned about a high volume of complaints, such as China or Italy. “Traveling to a restricted country could void coverage,” according to Stan Sandberg, co-founder of TravelInsurance.com. These countries are determined by the insurance company, not the government, so check with your provider before booking travel arrangements, even if you are heading somewhere with no reported cases.
In addition to the global Level 4 advisory, the US advisory also defines regions with additional travel restrictions, such as the EU, which is now associated with higher risk. This is different from what insurance defines as a Restricted Country, but could still impact your coverage if you are in transit. “If you are moving to a country that has travel restrictions with the United States, your coverage may not be effective. If you are a digital nomad, the best thing to do would be to come back to the United States if possible, or stay where you are if you have coverage, ”advises Rao.
What to know if you plan to stay abroad
If you are staying at your current location, your coverage should be valid for as long as you arrived in that country before the Level 4 warning went into effect. But with some policies, staying too long in a country of level 4 can be a cause of loss coverage. “For some coverages, some plans require you to leave the country within a reasonable time [after it’s deemed a Level 4 country]Says Meghan Walch, Travel Insurance Expert at InsureMyTrip.com.
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