Travel Insurance - What could go Wrong?
Did you know that in 2019:
- 1,300,000+ flights were delayed or cancelled in the U.S. alone impacting nearly 1 in 5 arrivals and resulting in numerous missed connections
- 13 hurricanes and 24 named storms in the Atlantic and North Pacific
- Nearly 73 active volcanos erupting globally by the end of 2019
- 145 earthquakes in the U.S., New Zealand, Australia, Mexico, Canada and Fiji
Travel Insurance is an essential component of any international trip because most Health Insurance policies and Medicare DO NOT extend coverage outside the USA. Travel Insurance policies often include a basket of coverage items such as Trip Cancellation, Trip Interruption, Trip Delay, Missed Connection, Lost or Stolen Baggage and Personal Effects, Baggage Delay. However, the two most important are Medical and Emergency Medical Evacuation. Some countries, particularly in Africa, require proof of Medical and Emergency Medical Evacuation coverage to enter the country or it may be required by the safari camps. In light of the COVID-19 pandemic many countries have now made proof of a Travel Insurance policy with Medical coverage mandatory to enter the country.
Travel Insurance can be purchased with or without Cancellation Insurance. Cancellation coverage will reimburse you for non-refundable, prepaid expenditures such as airfare or a tour package should you be forced to cancel your trip for a ‘covered reason’. Each insurer specifies what it considers a ‘covered reason’, thus it's important to understand the fine print of the policy. Most policies will exclude ‘pre-existing conditions’ although some may have a provision to extend you coverage for pre-existing conditions as a bonus if you take out their policy within some limited period (usually 7-14 days) of having made your first payment/deposit toward the trip. This could be purchasing the airfare or placing a deposit on a tour package. Some insurers require you to insure the entire value of the trip to obtain full coverage.
Also consider the need for ‘Optional’ coverages. For example, if you intend to engage in activities such as scuba diving, bungy jumping or a hot air balloon flight, then additional coverage will be necessary. Optional ‘Cancel for Any Reason' (CAR) coverage has become increasingly popular, but be aware that there are additional stipulations, there may be financial limits, and you will only get reimbursed 50%-75% of the insured amount.
As mentioned earlier Medical and Emergency Medical Evacuation are essential for international travel. Medical assures that you can pay for treatment or hospitalization. Emergency Medical Evacuation assures that you are covered to be medevacked to the nearest treatment center. The better policies allow you to be medevacked to an alternate treatment facility with better capabilities. The best policies allow you to be medevacked to the best available treatment center even if that is out-of-country or you may be able to choose to be medevacked to the hospital of your choice. In my opinion, if you are traveling far from home, you can’t have too much Medivac coverage. Consider taking the maximum amount or increasing the policy base amount as an option.
Travel Insurance is similar to other types of insurance – auto, homeowners, life – in that we purchase insurance to protect an investment in the hope that we will never have to use it. Honestly, most of my clients never need to file a claim, but for those who did it returned them many times the premium cost.
Premium cost is determined by the dollar amount being insured, the length of the trip, and age of the insured. Be cautious of purveyors of travel insurance who are vying to attract you with a low price. Firstly, what’s the stability and reputation of the company? Anyone can sell you a policy, however, what’s important is can and will they pay your claim? Secondly, what have they excluded from their coverage allowing them to lessen their risk to justify a lower cost? For example, who are they covering? When it comes to things like Cancellation or Trip Interruption due to an illness is it limited to just you who must be ill or does it also include your traveling companion, parents or children who could become ill? The better policies will extend the sphere of covered parties to siblings, aunts and uncles, business partners or even pets. Likewise, will it be you only that has the Pre-existing Conditions waiver or does the pre-existing conditions waiver also apply to your covered relatives?
Travel Insurance can be purchased with or without Cancellation Insurance. Cancellation coverage will reimburse you for non-refundable, prepaid expenditures such as airfare or a tour package should you be forced to cancel your trip for a ‘covered reason’. Each insurer specifies what it considers a ‘covered reason’, thus it's important to understand the fine print of the policy. Most policies will exclude ‘pre-existing conditions’ although some may have a provision to extend you coverage for pre-existing conditions as a bonus if you take out their policy within some limited period (usually 7-14 days) of having made your first payment/deposit toward the trip. This could be purchasing the airfare or placing a deposit on a tour package. Some insurers require you to insure the entire value of the trip to obtain full coverage.
Also consider the need for ‘Optional’ coverages. For example, if you intend to engage in activities such as scuba diving, bungy jumping or a hot air balloon flight, then additional coverage will be necessary. Optional ‘Cancel for Any Reason' (CAR) coverage has become increasingly popular, but be aware that there are additional stipulations, there may be financial limits, and you will only get reimbursed 50%-75% of the insured amount.
As mentioned earlier Medical and Emergency Medical Evacuation are essential for international travel. Medical assures that you can pay for treatment or hospitalization. Emergency Medical Evacuation assures that you are covered to be medevacked to the nearest treatment center. The better policies allow you to be medevacked to an alternate treatment facility with better capabilities. The best policies allow you to be medevacked to the best available treatment center even if that is out-of-country or you may be able to choose to be medevacked to the hospital of your choice. In my opinion, if you are traveling far from home, you can’t have too much Medivac coverage. Consider taking the maximum amount or increasing the policy base amount as an option.
Travel Insurance is similar to other types of insurance – auto, homeowners, life – in that we purchase insurance to protect an investment in the hope that we will never have to use it. Honestly, most of my clients never need to file a claim, but for those who did it returned them many times the premium cost.
Premium cost is determined by the dollar amount being insured, the length of the trip, and age of the insured. Be cautious of purveyors of travel insurance who are vying to attract you with a low price. Firstly, what’s the stability and reputation of the company? Anyone can sell you a policy, however, what’s important is can and will they pay your claim? Secondly, what have they excluded from their coverage allowing them to lessen their risk to justify a lower cost? For example, who are they covering? When it comes to things like Cancellation or Trip Interruption due to an illness is it limited to just you who must be ill or does it also include your traveling companion, parents or children who could become ill? The better policies will extend the sphere of covered parties to siblings, aunts and uncles, business partners or even pets. Likewise, will it be you only that has the Pre-existing Conditions waiver or does the pre-existing conditions waiver also apply to your covered relatives?
We only deal with Travel Insurers who have an established history of reputably paying claims and offering policies that are comprehensive in coverage and inclusions. We work with different insurance providers because some travel policies may be better suited to our clients. We will evaluate your particular needs and get you a quote. Or click below to compare and select a policy with AIG Travel Guard or Trawick International.
We only deal with Travel Insurers who have an established history of reputably paying claims and offering policies that are comprehensive in coverage and inclusions. We work with different insurance providers because some travel policies may be better suited to our clients. We will evaluate your particular needs and get you a quote. Or click below to compare and select a policy with AIG Travel Guard or Trawick International.