The life and insurance of expats in Greece
Guide 2023
WHO IS THIS GUIDE FOR?
Expatriates in Greece |
People who want to ease their transition to Greece and be better equipped to handle unexpected situations and emergencies that may arise during their move.
WHAT TO EXPECT?
Settling in Greece doesn’t have to feel like an Odyssey. Where the Greek language is holding you back this guide is here to help you throughout your journey of relocation to Greece as an expat.
LIFE
Interested in getting a residency?
Read below to start from the basics.
How to get the Greek Residence permit
As an expat, there are several ways to obtain a Greek residence permit.
The most common ones are:
Work Visa: If you have been offered a job in Greece, your employer can apply for a work visa on your behalf. Once you have the visa, you can enter Greece and apply for a residence permit.
Investment Visa: If you make an investment of at least €250,000 in Greece, you can apply for a residence permit. This could include investing in property, or setting up a business.
Student Visa: If you are planning to study in Greece, you can apply for a student visa. Once you are in Greece, you can apply for a residence permit.
Family Visa: If you have a family member who is a Greek citizen or a resident of Greece, you can apply for a family visa. Once you have the visa, you can enter Greece and apply for a residence permit.
Independent Financial Means Visa: If you have enough money to support yourself without needing to work in Greece, you can apply for an independent financial means visa. You will need to prove that you have sufficient financial resources to support yourself
The process of obtaining a residence permit in Greece can be complex, so it is recommended that you seek advice from a lawyer or an immigration expert. They can guide you through the process and ensure that you meet all the requirements.
How to apply for a residence permit in Greece
Obtain a visa
If you are not from an EU/EEA country, you will need to apply for a visa to enter Greece. The type of visa you need will depend on your situation (e.g. work visa, student visa, family visa, etc.). You can apply for a visa at the Greek embassy or consulate in your country of residence
Register at the nearest Aliens and Immigration Department
Once you arrive in Greece, you need to register at the nearest Aliens and Immigration Department within eight days of your arrival. You will need to bring your passport, visa, and any other relevant documents
Collect required documents
You will need to provide certain documents to support your application for a residence permit, such as a copy of your passport, proof of accommodation, proof of financial means, proof of health insurance, and any other documents relevant to your situation
Apply for a residence permit
You can apply for a residence permit at the Aliens and Immigration Department. You will need to fill out an application form, provide the required documents, and pay a fee.
Wait for a decision
After you have submitted your application you have to wait for a decision. The processing time can vary, but it typically takes several weeks to a few months.
It is important to note that the process of obtaining a residence permit can be complex and requirements may vary depending on your situation. It is recommended that you seek advice from a lawyer or immigration expert to ensure that you meet all the requirements and submit a complete application.
How to get a Tax Identification Number in Greece
AFM (“a-phi-mi”) is the Greek Tax Identification Number. This is the starting point for everyone who wants to have access to health in Greece. Foreigners living in Greece can obtain an AFM by following these steps:
Gather the necessary documents
To obtain an AFM, you’ll need to provide your passport or ID card, as well as proof of your Greek address. This can include a rental agreement, utility bill, or other official document that shows your name and address in Greece.
Visit the local tax office
Visit the local tax office (DOY) where they are registered based on their place of residence. A list of tax offices can be found on the website of the Ministry of Finance.
Submit your documents
Submit the necessary documents, which include a valid passport or identity card, proof of address in Greece (e.g. a utility bill or rental contract), and a completed AFM application form
Your application is being processed
The tax office will process the application and issue an AFM if all the requirements are met.
Receive your AFM
After your application is approved, the tax office will provide you with your AFM. This typically takes a few days to process.
It is important to note that the process may vary depending on the specific circumstances of the individual, such as their residency status or whether they are employed or self-employed.
It may also be helpful to seek assistance from a tax professional or lawyer who can provide guidance on the process. You’ll need an AFM to complete many transactions in Greece, such as buying a vehicle or renting a property.
Additionally, you’ll need to provide your AFM to your employer in order to work in Greece.
If you have any questions or concerns about obtaining an AFM as a foreigner, it’s best to contact a tax professional or the Greek Ministry of Finance for more information.
HOUSING
Are you considering buying a house in Greece? We’ve got you covered.
10 requirements to own a house in Greece
A general guidance on how to buy a house in Greece and the requirements you need to meet.
Please note that the specific details may vary depending on your individual circumstances, and you may want to consult a lawyer or real estate agent in Greece for more detailed information.
Here are the general steps and requirements:
Find a Property
The first step to buying a house in Greece is to find a property that meets your needs and budget. You can search for properties online or work with a real estate agent who can help you find a property that meets your requirements.
Sign a Preliminary Contract
Once you have found a property, you will need to sign a preliminary contract with the seller. In Greece, the preliminary contract, also known as the “reservation agreement,” is usually signed in the presence of a notary public. The notary public is a legal professional who is authorized to authenticate legal documents and transactions.
Obtain a Tax Identification Number (AFM)
In Greece, all property buyers must obtain a Tax Identification Number (AFM) from the Greek tax authorities. You will need to provide your AFM to complete the purchase.
Conduct Due Diligence
Conducting due diligence is an important step in buying a house in Greece. The due diligence involves verifying the ownership and title of the property, checking for any outstanding debts or liens, and inspecting the property for any defects or issues.
Residency
You do not need to be a resident of Greece to buy property, but you will need a valid passport and a Tax Identification Number (AFM), as mentioned in step 3.
Funds
You will need to have the funds to pay for the property, either in cash or through a mortgage
Taxes and Fees
You will need to pay various taxes and fees associated with the purchase, including transfer taxes, registration fees, and notary fees
Residency
Depending on the location and type of property, you may need to obtain permits and approvals from local authorities, such as a building permit or environmental clearance
Sign the Final Contract
Once you have completed due diligence and obtained any necessary permits or approvals, you can sign the final contract and pay the agreed-upon purchase price. The final contract is usually signed in the presence of a notary public
Receive your AFM
After signing the final contract, you will need to register the property with the Greek Land Registry. This involves paying a registration fee and submitting the necessary documents, including the final contract and any permits or approvals
SCHOOLS
Find the right international school for your children.
Getting started with Greek education
As a parent of an expat child, getting access to schools will depend on a few factors, including the child’s age, location, and preferred language. Here are some general steps you can take to get access to schools:
Determine your child’s educational needs
The first step is to determine the level of education your child needs (primary, secondary, or tertiary), the language of instruction, and any specific curriculum requirements
Research schools in your area
Once you know your educational needs, you can start researching schools in your area that meet those requirements.
Contact the schools
Once you have a list of potential schools, contact them to inquire about admission requirements and procedures. Be sure to ask about any specific documentation or qualifications you will need to provide, as well as any fees or tuition costs.
Attend interviews or assessments
Some schools may require an interview or assessment as part of the admission process. Be prepared to attend these sessions and showcase your academic abilities and personality
Residency & AFM
For school enrollment, you will be asked for a residence permit and a tax identification number (AFM). It is advisable to contact the school directly for the paperwork necessary
A residence permit and AFM (tax identification number) are necessary for private school enrollment in Greece, just as they are for public school enrollment. Private schools in Greece are required by law to verify the legal status of their students, and this includes verifying that they have a valid residence permit and AFM. Keep in mind that public schools’ curriculum and teaching are in the Greek language only. Homeschooling is not currently allowed for expats in Greece. In Greece, education is compulsory for all children aged 6-15 years, and children are expected to attend a school that is recognized by the Greek Ministry of Education. Homeschooling is not recognized as a valid form of education in Greece, and it is not legal for parents to educate their children at home. However, there are some exceptions to this rule. For example, children with severe disabilities or chronic illnesses may be allowed to receive homeschooling with the approval of the Ministry of Education. Additionally, expat families who are only in Greece for a short period of time may be able to enroll their children in an international school that follows a curriculum recognized in their home country. If you are considering homeschooling your child while living in Greece, it is important to consult with the Ministry of Education and seek legal advice to ensure that you are complying with all applicable laws and regulations.
A short list of international schools in Greece
Athens
American College of Greece, also known as Pierce College (US)
American Community Schools, ACS (US)
Byron College:The British International School (UK)
Campion School (UK)
Deutsche Schule Athen
International School of Piraeus (UK)
International School of Athens, ISA
Lycée Franco-Hellénique Eugène Delacroix
St. Catherine’s British School (UK)
St. Lawrence College (UK)
Thessaloniki
Anatolia College (US)
French School of Thessaloniki – Ecole française de Thessalonique
German School of Thessaloniki – Deutsche Schule Thessaloniki
Pinewood American College of Thessaloniki (US)
Larissa
International Community School of Larissa.
VEHICLES
Looking to buy a vehicle in Greece?
9 steps to buy your vehicle in Greece
Greece is a beautiful country with a diverse landscape. Owning a vehicle can greatly enhance your experience of exploring all that it has to offer. However, buying a vehicle in a foreign country can be challenging. From understanding the paperwork to choosing the right vehicle for your needs, we’ve got you covered. Here are the necessary steps for buying and owning a vehicle in Greece:
Research and choose the vehicle you want to buy
First, you need to decide on the type of vehicle you want to buy, whether it’s a new or used vehicle, and how much you’re willing to spend
Inspect the vehicle
Once you’ve found a vehicle that you’re interested in, inspect it thoroughly to make sure it’s in good condition. You can have a mechanic inspect the vehicle to check for any potential issues
Negotiate the price
Negotiate the price with the seller until you reach a mutually agreeable price.
Obtain a tax number
To buy a vehicle in Greece, you need to have a Tax Identification Number. If you don’t already have one, you can obtain it at the local tax office by providing your passport and proof of address.
Obtain insurance
You are required by law to have third-party liability insurance (TPL) in Greece. You can purchase insurance from any insurance company of your choice. You’ll need to provide the vehicle’s registration number, owners’ and drivers’ information to obtain a quote.
Register the vehicle
To register the vehicle in your name, you need to go to the local tax office with the seller and provide the necessary documents, including the vehicle’s purchase contract, proof of insurance, and your tax number. You can find more details on registrations in the next slide “Register a vehicle”.
Pay the fees and taxes
You’ll need to pay several fees and taxes when you register the vehicle, including the vehicle tax (road tax), the registration fee, and the stamp duty
Obtain license plates
Once you’ve registered the vehicle, you’ll be issued license plates. You’ll need to attach them to the vehicle before you can drive it
Pay for annual road tax and insurance
Every year, you’ll need to renew your vehicle tax (road tax) and insurance. You can find more details on registrations in page “Paying Annual Road Tax” on this document.
How to register your vehicle in Greece
It is necessary to Register your vehicle in Greece. Here is a list of paperwork that you’ll need:
Purchase contract
This is the document that shows you have bought the vehicle from the seller.
Proof of ownership
This document will prove that you are the legal owner of the vehicle. It can be a previous registration license or a document from the Greek Vehicle Registration Department
Valid insurance policy
You will need to show proof of insurance coverage for your vehicle. This can be either a hard copy of the insurance policy or an electronic copy.
Vehicle inspection certificate
The vehicle inspection certificate is required to ensure that the vehicle meets the safety and environmental standards set by the Greek government. You can obtain this certificate from a Greek Vehicle Inspection Center (KTEO)
Valid ID
You will need to present a valid form of identification, such as a passport or national ID card.
Tax number
You will need to provide your tax identification number (AFM) to the tax office. If you do not have one, you can obtain it by applying to the local tax office
Proof of payment of fees
You will need to pay a registration fee and any other taxes or fees required by the Greek government. You will need to provide proof of payment at the time of registration.
It’s worth noting that the above list is not exhaustive and there may be additional documents required depending on the specific circumstances of the registration process. It is always a good idea to check with the local tax office or KTEO before beginning the registration process to ensure that you have all the necessary documents.
How to pay your Annual Road Tax in Greece
In Greece, the annual road tax is known as Tēli Kykloforias and it is paid to the tax office. Here’s how to pay your annual road tax in Greece:
Check the due date
The due date for paying the annual road tax is the 31st of December every year.
Visit the tax office or aade.gr
You can pay the annual road tax at any tax office in Greece or download the annual road tax notice online at https://www.aade.gr/mycar . You will need your vehicle registration certificate and your tax identification number (AFM). The amount you owe depends on the size and age of your vehicle, as well as its environmental impact.
Receive your receipt
After you pay the road tax, you will receive a receipt. Keep this receipt in your vehicle at all times as proof of payment
It’s important to note that failure to pay your road tax on time can result in fines and penalties, and you may be subject to a road tax audit. If you have any questions or concerns about paying your road tax in Greece, contact your local tax office for assistance.
HEALTH
Your health and medical navigator
The Greek Public Healthcare System- Who is entitled?
Greek citizens and legal residents. This includes individuals who are
employed or self-employed, pensioners, unemployed individuals, and
dependent children up to the age of 25.
EU citizens who are temporarily staying in Greece, if they have a valid
European Health Insurance Card (EHIC) or other proof of entitlement.
Non-EU citizens who are legal residents in Greece and have a valid residence
permit (special conditions apply for Golden Visa applicants
It’s worth noting that while healthcare services are generally free for Greek citizens and legal residents, there may be a small contribution associated with certain services, such as prescription medication or specialized treatments.
How to get Social Security Number for Greek Hospitals (AMKA)
Register to EFKA
Register with the Greek Social Security Institute (EFKA) to obtain a social security number.
Pay social security contributions
The monthly contribution to EFKA is deducted from your salary if you are employed or paid directly to EFKA if you are self-employed.
Get your AMKA
Once you have paid the required contributions, you will be issued a health insurance number (AMKA). This card entitles you to access the public healthcare system (EOPYY) in Greece
Use
You can use your AMKA number to get treatment in public hospitals, clinics, visit doctors, have diagnostic tests (within the specific network), and purchase prescribed medication at no cost or with a small contribution.
Note that the eligibility criteria and requirements for accessing public
healthcare may vary depending on your specific circumstances, such as
your employment status, residency status, and nationality. It is advisable
to consult with the relevant authorities or seek professional advice to
ensure that you meet all the necessary requirements and have a clear
understanding of your rights and obligations under the Greek public
healthcare system.
Note also that all the relevant governmental websites are mostly in the
Greek language.
Golden Visa applicants cannot obtain an AMKA number. Any
contribution for hospitalization & relevant medical expenses occurring
from the use of the Greek public healthcare system will be partly
covered from the obligatory private insurance policy issued for the
permit application process.
Golden Visa applicants who are professionally active, whether as
freelancers or employees, are obliged to subscribe to EFKA and pay
their monthly premium, which depends on the type of employment and
salary). This entitles them to unlimited access to the Greek public
healthcare system.
Hospitalization for Greek Public Hospitals
In Greece, the public health system provides free or low-cost medical
treatment to all Greek citizens and legal residents who are enrolled in the
system and possess an AMKA number.
You may also consider purchasing a private health insurance policy to cover
private healthcare costs that may occur while living in Greece.
List of main Public Hospitals
Agios Andreas General Hospital
Agios Savvas Oncology
Hospital
Aretaieio University Hospital
Attikon University Hospital
Children’s Hospital “P. & A.
Kyriakou”
Elena Venizelou Maternity
Hospital
Evangelismos General Hospital
General Hospital of Athens “G.
Gennimatas”
General Hospital of NikeaPiraeus
Hippokration General Hospital
Ippokrateio Psychiatric Hospital
of Athens
Laiko General Hospital
National and Kapodistrian
University of Athens School of
Dentistry
National and Kapodistrian University of Athens School of Medicine
National and Kapodistrian University of Athens School of Nursing
Psychiatric Hospital of Attica “Dafni”
Sismanoglio General Hospital
Sotiria General Hospital
Thriasio General Hospital
University General Hospital
“Attikon”
University General Hospital of
Athens “Laiko”
University General Hospital of
Athens “Konstantopouleio-Patission”
Venizeleio-Pananeio General Hospital
In an emergency, you need to call the National Ambulance service (EKAV) at telephone 166. The ambulance will take you to the hospital on duty if it’s outside working hours- not the hospital of your choice.
List of main Private Hospitals
Hygeia Hospital, Athens
Errikos Ntinan, Athens
Athens Medical Center, Athens
Athinaiki Mediclinic, Athens
Doctor’s Hospital, Athens
Bioclinic, Athens
IASO General Hospital, Athens
Metropolitan Hospital, Athens
Euroclinic, Athens
Mitera Hospital, Athens
IASO Children’s Hospital,
Athens
Iatriko Kentro, Athens
Central Clinic, Athens
Leto, Athens
Onasseio, Athens
Eye Center, Athens
Marousi Private Clinic, Athens
Mediterraneo Hospital, Athens
St. Luke’s Hospital, Thessaloniki
Iatriko Kentro, Thessaloniki
Opthalmica, Thessaloniki
Geniki Kliniki, Thessaloniki
Kianous Stavros, Thessaloniki
Creta Interclinic, Crete
Olympion, Patras
Asklipieio, Larissa
Iaso, Larissa
Anassa, Volos
Elpis, Volos
Bioclinic, Thessaloniki
PRIVATE INSURANCE
Where to start? Important questions to ask yourself, regarding private insurance for expats in Greece
9 steps of a typical insurance journey for an expat
Research
The first step for a client is to research and compare insurance options that meet their needs and budget. They can search online, ask for recommendations from friends and family, or work with an insurance agent to help them find the right insurance solution
Application
Once the client has decided on an insurance quote, they will need to fill out an application. They will have to complete their personal information and health details about the policy they are interested in
Underwriting
After the application is submitted, the insurance company will review the client’s information to determine their risk level. This process is called underwriting and it takes from a few days to a few weeks to complete
Terms offered
Once the underwriting process is complete, the insurance company will either approve, reject or propose special terms. If approved, the client will receive their policy documents, outlining the terms and conditions of their coverage. If rejected, the insurance company will provide a reason for the denial.
Payment
If the client accepts the terms offered, the insurance premium should be paid according to the payment schedule outlined in the policy. Payment frequency can be annually, semi-annually, quarterly, or monthly, depending on the payment options offered by the insurance company
Coverage
Once the premiums are paid, the client’s insurance coverage will be in effect. They can use their insurance for eligible treatment or in case of an accident or illness that requires medical attention
Customer Service
Throughout the insurance journey, the client can contact the insurance company’s customer service department for any questions or concerns. The customer service team can help with policy inquiries, claims, billing, and other issues that may arise
Claims
In case of a covered loss or damage, the client can file a claim with the insurance company. They will need to provide details of the incident, such as when and where it happened, and any documentation that supports the claim. The insurance company will review the claim and provide compensation according to the terms of the policy.
Renewal
Insurance policies typically last for a specific period, such as one year. Before the policy expires, the insurance company will send a renewal notice to the client, outlining any changes in coverage or premium costs. The client can choose to renew their policy or look for a different insurance option.
5 questions to conclude whether you need an International health insurance program or not
An international health insurance program could be an option for expats planning to live in Greece. Answer the following questions that define whether or not you need an IPMI.
What are your biggest concerns when it comes to healthcare expenses in Greece?
Are you worried about the cost of healthcare being higher or lower than what you’re used to in your home country? International health insurance can help address concerns about healthcare expenses in Greece. It offers coverage for medical expenses, including doctor visits, hospital stays, and prescribed medications. It can also provide coverage for emergency medical care and evacuation services, which may be helpful if you need to be transported to a different country for treatment.
Have you researched the healthcare system in Greece and what types of coverage and insurance options are available to expats?
Do you know if there is a public healthcare system and if private insurance is recommended? It’s important to research the healthcare system in Greece and the types of coverage and insurance options available to expats. While there is a public healthcare system in Greece, it may have limitations and waiting times for certain treatments or procedures. Private insurance is also available, but it may be more expensive and have restrictions on coverage. International health insurance can provide more comprehensive coverage than public or private insurance in Greece, and it can also offer coverage for medical care outside of Greece, including your home country.
How often do you typically visit the doctor in your home country?
Do you anticipate needing more or less frequent medical care in Greece? Your anticipated medical needs in Greece can impact your choice of health insurance. If you anticipate needing more frequent medical care, international health insurance can provide coverage for routine doctor visits and specialist care. It can also offer coverage for pre-existing conditions, which may not be covered by local insurance options.
Are you currently taking any medications on a regular basis that are available in Greece?
If not, do you anticipate needing to import medication or find an alternative in Greece? If you are currently taking medication or anticipate needing to in the future, international health insurance can provide coverage for prescribed medications. It can also offer coverage for medical equipment, such as mobility aids or hearing aids.
How important is having access to a wide network of healthcare providers that speak your language and understand your culture in Greece?
International health insurance can provide access to a network of healthcare providers that speak your language and understand your culture. This can be helpful if you have language barriers or cultural differences that may impact your medical care. Also the policy wording is offered in English, a language that you can understand.
5 questions before you contact an insurance agent
There are a lot of programs to choose from regarding your health insurance. To determine what’s best for you, you have to think of your needs. Everything starts with you after all. Here are some questions to answer before you call an insurance agent.
How long will I need health insurance coverage?
You need to determine if you need short-term coverage for a few months or long-term coverage for several years.
Do I currently have active insurance coverage?
You need to determine if you have an existing health insurance policy and whether it is public or private.
What is my family status?
You need to consider if you are single, married, or have children, as this may impact the type of coverage you need.
What is my budget for health insurance?
You need to determine how much you can afford to pay for health insurance premiums, deductibles, and other out-of-pocket costs.
What are my medical needs?
You need to consider your current and potential future health needs and determine what type of coverage is necessary to meet those needs.
10 questions to determine the best insurance offer for you
Assuming you have some insurance offers now in your inbox. How can you determine what’s best for you? As insurance experts, we would suggest that you ask the following important questions when considering your health insurance:
What is the coverage period of the policy?
This will help you determine how long you will be covered by the insurance plan.
What is the scope of coverage?
You need to ask what specific medical services and treatments are covered under the insurance plan
What is the cost?
You need to know how much you will have to pay for the insurance plan and whether it fits into your budget, based on your needs.
What are the deductible and coinsurance amounts?
You need to ask about the amount you have to pay out of pocket before the insurance starts covering your expenses, and how much you will have to pay after the deductible is met.
What is the network of healthcare providers?
You need to know which hospitals, clinics, and doctors are included in the network of the insurance plan
What are the exclusions and limitations?
You need to know if there are any services or treatments that are not covered under the insurance plan
Do you need any prior authorizations for medical services or treatments?
You need to know if you need to get approval from the insurance provider before receiving certain medical services or treatments.
What is the claims process?
You need to know how to submit a claim and what the process is for getting reimbursed for your medical expenses.
Are pre-existing conditions covered?
You need to know if the insurance plan covers any preexisting conditions you may have
Can a family member be added to the policy?
You need to know if the insurance plan covers your family members and if there are any limitations or exclusions.
GLOSSARY
Expat Insurance Buzzwords explained
Co-insurance or Copay
A fee you pay for certain healthcare services, is evaluated on either a fixed amount or on a percentage base on each claim.
Example
A policy with a 10% co-pay for doctor visits means you will pay €10 for a doctor’s visit that cost €100, receiving a reimbursement of €90.
Compensation or Indemnity or Reimbursement
The payment you receive following your insurance policy being activated for an eligible claim you submitted
I received an indemnity of €1.000 from my medical insurer following my claim for my hospitalization.
Coverage limit
The maximum amount your insurance policy will pay for a certain eligible claim type or for all claims during a period of time, usually a year.
Example
An insurance policy with a €100.000 coverage limit will pay no more than €100.000 for all claims during the annual duration of your insurance policy.
Deductible or Excess
The amount you pay before your insurance coverage begins to compensate you
Example
A policy with a €500 deductible means you pay the first €500 of a covered claim. The deductible can apply for each claim, each claim of a certain type (e.g. earthquake deductible), or for a period of time (annual deductible).
Endorsement
An addition or amendment to your insurance policy that changes the terms of your coverage, usually occurring after the policy has already been issued or renewed
Example
Changing your home address usually leads to an endorsement of your policy, without a premium increase. On the other hand, if your requested that your child is added to your medical insurance policy, an endorsement would be issued which would charge an additional premium to you.
Exclusion
A situation or condition that is not covered by your insurance policy.
Example
A property insurance policy may exclude damage caused by floods, earthquakes, or certain types of natural disasters. A medical insurance policy may exclude treatment for weight loss.
In-network or Provider network
Healthcare providers who have contracts with your insurance company to provide services at discounted rates.
Example
Visiting an in-network doctor may be less expensive than visiting an out-of-network doctor
No-claim bonus
An amount or discount you receive following a year without claims or using an alternative provider instead of your insurance company.
Example
You received a 10% discount on your renewal premium since last year you did not file any claims. Similarly, an insurance company might offer your €120 per night for an otherwise eligible claim, if you chose to use a public healthcare hospital instead.
Out-of-network
Healthcare providers who do not have contracts with your insurance company.
Example
Visiting an out-of-network doctor may result in higher out-of-pocket costs or rejection of your claim.
Out-of-pocket maximum
The most you’ll pay in a given year or specific claim, as copay (or co-insurance) for covered medical expenses.
Example
A policy with a €500 out-of-pocket maximum means you’ll pay no more than €500 in a year for all covered medical expenses. If the same applied on a claim-to-claim basis, your reimbursement for an eligible €10.000 claim with a 10% coinsurance would mean that instead of paying €1.000 out of your pocket, this amount would be limited to €500.
Pre-existing condition
A health condition you had before you enrolled in a health insurance plan.
Example
If you have a pre-existing condition that you did not declare during your insurance application, your insurance plan may not cover related medical expenses. This usually refers to conditions that have already manifested themselves, with symptoms or a diagnosis
Premium
The amount you pay for your insurance policy
Example
A policy with a €100 monthly premium means you pay €100 per month for coverage.
Premium loading
The extra amount you pay on top of the standard premium, for getting cover for a high-risk item.
Example
A policy that costs €1.000 per year for your medical insurance might have a premium loading of an additional €200 for adding coverage for a known pre-existing medical condition
Rider
An additional optional benefit that can be purchased with additional premium to be added to an insurance policy.
Example
I added a rider to my life insurance policy to provide additional coverage for accidental death.
Underwriter
The person or company that evaluates insurance applications and determines the risks and premiums associated with insuring the applicant. Also associated to the insurance company that carries the risk and responsibility of compensation.
Example
The underwriters examined my application and would like to apply an exclusion for my preexisting condition or apply a premium loading of €1.000 for accepting it.
Waiting period
The period of time an individual must wait after their insurance policy commences before they have the right to claim in general of for a specific type of claim.
Example
Your medical insurance policy has been activated on the 1st of January with a 10-month waiting period for maternity. This means that you will not be reimbursed for any maternity-related claims occurring until the 1st of November.
Insurance agent
A person or company which is authorized by one or more insurance companies to promote their insurance plans and service their customers. An insurance agent can be “Tied”, meaning the obligation to exclusively sell the products of a specific insurer, or “Non-tied”, meaning that they are fully independent to choose the insurer and the plan they prefer for their customer.
Insurance broker
A person or company which intermediates between an insurance company and a customer. A broker cannot be “tied” as by definition they need to be independent. A difference with a Non-tied insurance agent is that an insurance broker can issue a “cover-note”, which legally confirms insurance coverage in place of the original insurance policy
