Trip Insurance: So, you think you're covered?
A significant portion of my time with clients is discussing insurance. It's not nearly as exciting as planning a trip to the Loire Valley or the Amalfi Coast but it is a very important conversation.
You want the best value for your travel dollar. Insurance will protect your investment so you can relax knowing that you can manage any surprises that come up - and they do sometimes!
Out of Country Medical
Out of country or province medical insurance is what most of us think of first and you don't want to go without it. Trust me.
A simple fall can put you in hospital with a list of bills. If you have this coverage then take a look at your plan. Is there a dollar limit on coverage and how many times a year can you travel under this plan? How many days at a time are included?
Paying the doctor or hospital up front? Will your plan work with the hospital and arrange payment or do you need to pay the bill and claim later? These unexpected costs can be surprisingly high, and purchasing additional coverage from a plan designed for travel is relatively inexpensive.
Cancellation Insurance
I think the cancellation and interruption insurance is the one that causes the most confusion.
Often I hear " I won't cancel" or " I'm going no matter what". Nobody ever expects to cancel their plans but the reality is if you knew you were going to cancel you would never plan the trip. Most cancellations happen at the last minute.
Sometimes I get asked for cancellation insurance after my client decides to cancel the trip, but of course it's too late for that. Other than Cancel for Any Reason coverage, only unforeseen and covered risks qualify.
Cancellation insurance protects you from loss of the amount paid that is non-refundable. Most of what is booked and paid for in advance is non-refundable. This varies greatly depending on may factors like the flight class of service. Always be aware of what is refundable and what isn't. Even a hotel that you haven't paid for yet likely has a cancellation policy of at least 24 hours before arrival.
Interruption Insurance
Interruption coverage takes effect as soon as your trip starts - as soon as you lock your front door.
A typical interruption claim is while you are away there is an illness or death at home causing you to "interrupt" your vacation and rush home. This coverage protects you from additional out of pocket expenses like airline change fees and additional fares.
It will also refund you for the unused portion of your holiday that is non-refundable. Again, it's important to know what portions of your trip are non-refundable.
Your credit card may give you some cancellation and/or interruption but be sure of what you have. I find many clients when nudged to check with their plans come back quite surprised. Often they find they don't have the coverage they thought they did.
Check to see if there is a [maximum coverage] dollar amount for the cancellation. $1500 coverage on credit cards is typical, but there are not many trips for that price these days. Are you allowed to bump up the coverage to the full cost of your trip? Not all cards will allow this. Some credit cards will give you interruption but not cancellation or vice versa.
Is everyone in your family covered or only the primary card holder? If you travel frequently, find out if there is a limit on the number of trips you can do in a year or a maximum payable.
But do not fret as we can help with that. We can counsel and give you options to top up where you fall short.
Employer Insurance Plans
Some Employer Insurance Plans include comprehensive travel insurance coverage as part of their overall benefits package. This might include medical coverage for emergencies that occur outside of the home country, coverage for trip cancellation or interruption due to unforeseen circumstances like illness or weather disruptions.
Individual policies can vary widely, so it's crucial to thoroughly review their benefits package and check with your HR department or the insurance provider.
Insurance offered by Cruise and Tour Operators
What about the protection plans offered by the tour operator or cruise line? They are relatively inexpensive for what you get and a great back up plan. Generally you are able to cancel up until a few days or hours before you travel with no questions asked and get a future travel credit for one year.
Usually there are no refunds and even if it is for a risk that would normally be covered by insurance you are most often getting a credit with that supplier with an expiry date. Tour Operators don't cover trip interruption, so if you do need to cut your trip short you will be on the hook for the costs to get home. Although these are a good option it is recommend having full coverage insurance.
What I recommend to all my clients
First, let's find out exactly what coverage you have with your credit card or employee benefit plan. Read your policy on your benefit provider's website or check with your HR department.
The most comprehensive plans offered are those that are designed for travellers. Not a perk to get a credit card and not an add on but something designed for the types of life events that will change your travel plans.
Loss of job (through no fault of your own), a family death or of a service animal, the Canadian government issues a travel advisory to avoid all non-essential travel. What if your college rescheduled an exam for while you are travelling? There are so many things covered that you would never think of when planning a vacation.
Peace of mind.
Protect Your Travel Investment
Travelling the world is an investment. You work hard and have planned this trip for months and sometimes years and the disappointment and financial loss can be quite devastating if the trip does not happen or something awful does happen while away.
So, bottom line is we do need to talk about protecting your investment and peace of mind. Let's have a quick chat to make sure you have the protection and there are no surprises.
Here's to your happy, healthy and safe travels (and no cancellations).