Travel Insurance

Having sold travel insurance for almost 21 years now I still find it shocking that some folks do not take insurance on their travel packages.  I doubt these same individuals would neglect to pruchase home owners insurance so why take the risk on a $5000 plus trip.  Anything can happen as I have witnessed over the years, unexpected illnesses, car accidents, house fires, volcanic eruptions and most recently government issued travel advisories.  In todays world it just makes sense to insure your hard earned money. 

One of the excuses I hear most often however is that the client has coverage through another party, be it a credit card or work plan.  All I can say to that is make sure it is adequate.  I read this interesting article recently and thought I would share it.

Free” Credit Card Travel Insurance is High Risk


By Milan Korcok, Editor, TravelinsuranceFile.

If you’re struggling to hold down the rising costs of your summer vacations, turning to “free” credit card travel insurance for personal or family protection can be a high risk proposition. Just because something is free, doesn’t mean it’s a good deal.

Credit cards do not provide the same protection as stand-alone, travel insurance. Even if you carry the high-end credit cards* that charge $120 to $150 annually and require a substantial household income, your emergency medical coverage is usually limited to short trips (15 to 21 days), Is not available to people over 65, and will not cover pre-existing conditions to the extent that stand-alone insurance allows.

If you carry the free credit cards or ones that require relatively low annual fees, there will be no out-of-country medical coverage. Neither will there be trip cancellation or interruption benefits, or any of the benefits offered by the stand-alone plans. Many of the free/low cost cards advertise medical emergency assistance—but that simply means they will help you find a physician or hospital in your destination area—not that they will pay for those services. They won’t. Neither will they repatriate you by air ambulance if you need it, not bring someone to your bedside, nor carry your body home if you die. You will have to make and pay for all of those arrangements on your own, and doing that in a foreign country, with its own rules and regulations, is a complicated business only professionals can handle.

If you’re on any medication, or regularly visit your physician for chronic conditions, even mild ones that appear to be under good control, like high blood pressure, or if you’re over 65, or planning a trip longer than 15 or 21 days, stand-alone travel insurance is a safer alternative. It can offer coverage for your pre-existing conditions and you can travel for up to 365 days if you wish. If you have a pre-existing condition you may have to meet some eligibility criteria or complete a medical questionnaire, but if you meet the insurer’s requirements your conditions will be covered. Credit cards don’t have the same flexibility to tailor a plan to your specific needs.

Before you count on credit cards to provide medical coverage out of the country, know precisely what their limitations are. You may be surprised.

*The high ends card include such well-known titles as Aerogard, Aventura, Infinite, Passport, Avion, World Elite and some others.

So think twice and really consider taking out the insurance on your next vacation.
 
Safe Journeys everyone!