In its most basic form an expat health insurance policy is simply a contract agreeing to pay for your medical expenses.

You agree to first pay the insurer an annual premium, and in return, the insurer agrees to pay for your medical expenses.

Beyond the marketing and brochures at the core is a carefully worded contract outlining the terms and conditions of the insurance policy, including the insurer’s obligations, benefit limits, deductibles, and any exclusions.

Being just a contract is something that often gets overlooked by expats, and as with any type of contract, it only holds any value if it can actually be enforced in a court of law or by a governing regulatory body, such as an insurance regulator.

An insurer can issue you an international health insurance policy from anywhere in the world, but if the policy isn’t legally enforceable in the country where you are living, or if the insurer is not regulated in the country you are in, you may have very limited protection if the insurer refuses to pay your insurance claims.

Local courts and insurance regulators most likely won’t have jurisdiction over a foreign insurer.

There are a number of caveats to understand.

You can buy international health insurance from an insurer that is based in and heavily regulated in a country with a strict rule of law, such as the United States, the United Kingdom, or Singapore.