A location-independent life is a dream for many. Traveling from one place to another with nothing tying you down is the ultimate freedom. But there is one major concern- healthcare.
When you’re active on the road, illnesses and injuries can happen. Sprain an ankle while mountain climbing, catch a virus on a train or airplane, and you could be dealing with a huge medical bill that can use up all your precious travel funds.
Payment plans can help. They spread payments out into smaller installments, making care more affordable, and many are interest-free for a limited time. Find out how they can help you cross every travel destination off your bucket list.
The Expense of Travel-Related Illnesses and Injuries
A nomadic lifestyle poses a risk of illness and injury. If you are an adventurous type, you may find yourself climbing Mt. Kilimanjaro, ziplining across the Amazon, or kayaking in Milford Sound, all of which present physical risks. Traveling on airplanes, trains, and buses, as well as communal living, increases the spread of viruses.
These illnesses and injuries can be quite expensive. According to SquareMouth.com, medical emergencies can cost travelers at least $1600. Medical evacuations, which may be necessary if you become ill or injured in a remote location, can cost a whopping $200,00 or more.
Why Insurance is a Nightmare for Location-Independent People
Insurance can make care more affordable, but it’s not easy for travelers to find the ideal solution. Here are some common challenges.
- Traditional insurance: Assumes you live in one country, have one private residence, and receive care from one provider network. It makes it difficult to access and afford out-of-network care, which is typically the only kind available when traveling.
- Travel Insurance: Generally covers only emergency care and includes many exclusions. Plans are usually suited to trips on a ‘per-day’ basis and not meant for ongoing needs. It can also be difficult to maintain continuity of care and prescriptions when abroad.
- International insurance: Costs can be high, and premiums can jump with annual renewals. A report from AHIX Marketplace shows they can range from $2,000 to $6,500 per year, although averages are typically on the high end ($5,000 to $6,000). Additionally, as with travel insurance, you may face exclusions and administrative hassles.
As a result, many travelers go without insurance and live with the low-level anxiety that comes with a risk of injury and illness. They must be extra careful to care for themselves, which can be difficult with an adventurous lifestyle.
Why Ignoring Medical Bills is the Most Expensive Option
Travelers often find medical bills can sneak up on them when they least expect them. You may get billed for an out-of-country ER visit that happened months ago. Or you may delay tests and treatments, leaving them for a short window during a home stay, leading to bills being due all at once.
It’s tempting to ignore these bills given your nomadic lifestyle, but unpaid bills can go into collections and wreck your credit, making it difficult to rent apartments and transportation abroad, get approved for visas, and pass background checks for remote jobs.
On the other hand, paying these bills can eat into your travel budget, reducing your ability to see all the places you want to see.
Healthcare Payment Plans Present a Solution
Payment plans can help you access the care you need without breaking the bank and eating into your travel budget. Like a credit card, the card covers the cost of care with your provider and lets you pay the fee in installments. Unlike a credit card, many plans offer limited-time interest-free payments, so expenses don’t accrue.
These plans can also cover out-of-pocket expenses after insurance is applied.
How to Choose the Right Payment Plan
Payment plans are convenient for travelers, and there are various options available, including Cherry Financing and Care Credit, but it’s essential to choose one you can work with. Here are some considerations:
- Low Fees: Choose a plan with low or no interest, APRs, penalties, or setup fees.
- Flexible: Ensure you can set up a plan that works with your current nomad income.
- Transparency: The plan should offer clear terms regarding the total amount, due date, duration, and what happens if you miss a payment. Avoid plans with confusing terms and fine print.
- Automated Payments: These can be essential for someone who is likely to miss payment windows when traveling.
- Convenient Customer Service: Given time zone differences, you may not be available to talk to customer reps during ‘normal business hours’. Ensure you have a way to communicate after hours, whether via email or chat.
How to Design Payment Plans Around a Nomadic Lifestyle
Your location-independent lifestyle may present unique factors that can impact finances. Here are some ways to arrange payment plans based on your financial circumstances.
- Plan Based on Your Lowest-Income Months, Not Your Best Ones: A nomadic lifestyle means income is rarely steady. Given the option to create a flexible plan, base it on your lean months, not on your most successful months, to ensure your payment is always affordable. You can always pay more during high-income months to pay off your bill sooner.
- Consider Payment Priorities: When times are tight, prioritize bills that are in collections or close to collections. Bills with interest are a second priority, while non-interest bills with flexible terms take third place.
- Ask About Consolidation: Find out whether bills from different departments within a hospital system will consolidate your balances into a single payment plan, making them more affordable.
Conclusion
Although a nomadic lifestyle is highly desirable for some, healthcare is a challenge. Travelers are at high risk of illness and injuries, and international and travelers’ insurance just don’t cut it. Payment plans are an optimal solution, allowing travelers to spread payments over time, and many are interest-free for a limited time.
How will they help you cross countless destinations off your bucket list?
