I had the pleasure of submiting an article on Travel Insurance to the Alberta St. George of England Society newsletter for May 2010. It has now been sent to members, and I am sharing it here. (It is not on the website as of their moment.) This is a little on the long side compared with most posts.
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When was the last time someone told you this much about travel insurance?
As you plan your trips out-of-province or out-of-Canada, do you ensure that you have an appropriate travel insurance policy in place? Do you consider this for children or grandchildren going away to school, or on trips, and for visitors whom may be coming to Canada? I like to think that everyone does, but it is not always the case. For the stories of people saved from financial devastation, there are the reports of those not so lucky. “Why bother?” some will ask. If you read nothing else, please read about pre-existing conditions and stability periods.
Travel insurance may be for out-of-Canada, but it is often for out-of-province. Reciprocal agreements between the territories cover insured hospital services and insured physician service within Canada, except physician services in Quebec. However, other expenditures not covered may include ambulance, equipment rentals, paramedical services, emergency prescriptions, and additional accommodation and meals. Outside Canada, minimal reimbursement is paid for physicians and hospitalization, with the maximum for hospitalization at $100 per day. Rates will vary around the world, as they do in Alberta, but an example of the daily hospital bed cost at the University of Alberta Hospital for out-of-country visitors is $3,427 ($13,910 for Intensive Care). It is no wonder Alberta Health recommends the purchase of travel insurance.
Have you ever thought that you are in good hands with medical staff when you embark upon a cruise? Of course you do, but who will pay? You will receive a bill for medical services rendered upon the ship. Also, if the condition is more serious, expect to disembark at the next stop unless cleared by a physician to continue. If you must be airlifted mid-trip, who will be paying for that? Extended hospitalization can result in significant financial expense.
Group plans and credit cards may include travel insurance. Examine them carefully. For how many days will they cover, and can the coverage be extended? What is the maximum for emergency medical expenses, and do they cover other associated costs such as bringing a family member to your side, returning your vehicle or motor home to your residence, allowing you to return home for certain circumstances, and even sending you back to your vacation after an emergency that caused an interruption has passed? Examine the exclusions for pre-existing conditions and stability periods. If you have a condition that is not stable within a period of time, including a change of prescription, you may not be covered. The stability periods vary by age and company, but typically they are 3, 6, or 12 months. It can be as low as 7 days (under 60 years of age) with one company, and another (for business owners and employees) does not restrict payment due to pre-existing conditions.
With the recent H1N1 scare, different approaches were taken by insurers. This might have meant full coverage for medical conditions. It might also have meant no coverage for H1N1 related illness or absolutely no coverage for anything if you traveled to the affected area. What would your provider’s position have been? In similar circumstances in the future, these questions must be asked, and don’t accept one answer as representing the whole industry.
The most important coverage is emergency medical and hospitalization, typically from $1 million to $5 million. Trip cancellation covers prepaid costs when you cannot travel, for covered reasons, prior to departure. Trip interruption is there in case your trip must be interrupted or is delayed after you depart. There are also benefits available, or included, such as accidental death and rental car coverage. A sometimes advantageous option is the purchase of a multi-trip policy if you make 2 or more trips, but compare. Student coverage offers special features and a special price when going to school outside of Canada.
Your visitors to Canada should check on plans in their home country before leaving, but direct them to an insurance broker if they arrive without. You should also know that not all policies require purchase at the time of ticket purchase, while some do limit to within so many days of purchase. The key to medical coverage is that you have not left your province, while trip interruption and cancellation will have a couple of other factors to consider. Bon voyage with peace of mind.
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This is the blog of Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, operating in Edmonton, Alberta, Canada. Tony is an independent Life and Accident & Sickness Insurance Agent and Broker. Blog entries are an expression of the author’s personal opinions, and the insurance companies represented will not be held liable in any way for the opinions expressed herein.
